Deadwood, I think what the traders here are really saying, most of them any way, is that while news may indeed move the market (it does in my opinion) that they don't really care what moves it as long as it moves. Most traders trade what they see happening in real time and that's what i try to do to the best of my modest abilities. I do like to know what is moving the market, but the bottom line is you don't have to know what in order to profit from the moves. I am talking strictly intraday here. I trade the ER2, or try to!, and the SOX is something i monitor or should be. I did notice that the Sox was not really participating in the markets up-move to the extent it should have been, and frankly i should have been paying a little more attention to that. Had i been, i might have been a little more attentive to the possibility of a strong reversal in the ER. As it was i got into the reversal move a little later than i should have, but i'm not complaining. I was aware that there was a strong probability that we would pullback from the highs made today because we were already a little above the previous market high and in a region of strong resistance. The suddeness and force of the reversal though, took me by surprise. Stoney you often have worthwhile comments and i benefit from them. Thanks.
Read the chapter on The News Media in the book Irrational Exuberance, there are several studies on price movements and news, it is not what it appears.
<i>"My God you know certain motley fools cut and paste and make fun of us over here at ET..."</i> They do? My God, that's a lot like Miami Dolphin fans making fun of Buffalo Bills fans. Next thing you know, RealMoney.com will be in the mix, too. In any event, the market dropped like a stone this afternoon because a number of people just like stoney are nervous longs. The gap & flat tape left markets primed for a long squeeze... aka sharp plunge. All those unrealized gains just hanging there, above open gaps like cheesecloth. Makes the trigger finger on those hooves a little twitchy, now doesn't it? So when the news comes out that China = U.S. flow of goods is actually affected by flagpoled commodity prices, it impacts retail sales thru xmas season far more than the matter of USDCAD exchange rate between White Widow imported from B.C. versus Northern Lights hybrids grown outdoors in the hot sun and rich loam soils of U.S. Add that to reality of this Fed knee-jerking rate cuts instead of starting a complete rate-cut cycle, and you get a little -30pt pullback in the spooz. NBD... just business as usual via July and August. Once the markets grasp reality that the Fed cannot play tooth fairy forever, we'll enjoy many more days like this. And bigger. Viva la volatility
There were no brakes on the drop as the bids simply disappeared. What some seem to forget is that there is no guarantee of continuity. Merton was wrong. I'm not suggesting we crash, but anyone bullish into this technical action should limit their trading to quarterly 401k adjustments.
Why aren't you back in your hole? You normally are when the market goes down (which it does about 50% of the time). Seriously, I'm trying to be market-neutral, bear nor bull, but ignorant emptyheads like this really make me hope for a few serious down days in a row, just to shut them up. Djeez man, just because you only papertrade doesn't mean you can't short too! Ursa..
Ursa, i actually put that guy on ignore.. Makes elitetrader a much better read. It was quite offensive to me when he made light of Seth Tobias unexpectedly passing away. It was in such bad taste, that I requested Baron to ban him.. but he opted for just deleting his post. Its unfortunate that he still has an account here. Again, just put him on ignore.. I only see his posts now when somebody references them.
Yes, but you can't trade on news...is my point.. have you ever tried to buy or sell the FOMC announcement? News is factored in the instant it becomes public, so it cannot be traded... What you should be focused on is price, volume, and momentum... And as for news, of course I watch it...but the markets REACTION to news is more important than the news itself...the news by itself is benign...
Oh my Sammy what happened> Seth Tobias unexpectedly passing away.! I ran into Seth a few times back in the day... " Big C? " ~ stoney
There isn't always a news item that acts as a signal to selloff/ rally. The market has been going up for a month without a bigger drop, we were simply just "due" to have one. And once people realize that the selling is not gonna stop, it just reinforces itself and keep going. But again, if you are interested in TA, we reached the upper BB, so that was the sign to turn the boat....
Northern lights hybrids that grow outdoor in the US? I've never come across that... maybe that's why the market dropped