Quote from Topsurfi:
that is a lame excuse for these people because you can find a lot of charts like stock market versus GDP or unemployment etc. in the internet within minutes if you are willing to do some homework.
Agreed.
But there is nothing like being short at the bottom of a bear market and watching the S&P rally day after day on "bad" economic news to really teach you an important lesson!
Resident ET perma-bears like
S2007S and his ilk appear to me to be very young, with not much trading/investing experience under their belts . . . they spend day after day posting one "cut and paste" article after another on ET that agrees with their bearish bias. It's almost like some sort of incredibly insecure need on their part to validate their self-esteem or something along those lines. It becomes a daily routine with them, searching for articles and viewpoints that agree with their own and consistently calling anyone who shares an opinion opposite of theirs, a FOOL.
Rather than "listen" to the market and the price action that is occuring . . . they would much rather
rationalize WHY certain price movement is occurring.
Furthermore, such "methodology" does not even begin to allow for any use of technical analysis. Ever notice that the perma-bears of ET are all too happy to throw out round numbers on the Dow Jones, yet never ever delve into any kind of discussion of technical analysis that would support such a claim?
I'm sorry, but this is definitely
NOT the way experienced traders approach this game. No way, no how. Successful traders couldn't care less WHY a market is behaving as it is. They simply want to be on the right side of the price action and go with it. Enough said.
As for how the economy often has ZERO correlation with the equity market, I wonder how the perma-bears would
rationalize the FACT that the unemployment rate ( seen in the weblink below ) continued to climb to a peak of 6.3% in JUNE of 2003 even though the stock market had
ALREADY BOTTOMED IN EARLY MARCH ( March 12th ) at an intra-day low of
7,397 to then rally strongly and close the year out +25%.
http://www.tradingeconomics.com/Economics/Unemployment-rate.aspx?Symbol=USD
By the time the June unemployment "peak" of 6.3% had come out in the first week of August, the Dow Jones was already > 9150. ( see weblink below for chart )
http://futures.tradingcharts.com/historical/DJ/2003/9/linewchart.html
Even more importantly, the Dow Jones had surged above 9,000 in early June. But hey, the ET perma-bears would have been shorting the market ( in their imaginary paper-trading accounts ) and "averaging" those shorts all the way up through Dow 8,000, Dow 8,500, Dow 9,000, etc. - - - and clinging to every single negative financial media article that they could get their hands on.
Anyone want to be short for over 1750 Dow Jones points?
I didn't think so.
