Why the early morning rally

Quote from ElCubano:

can someone translate this into english....:D
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Basically it says "Because I don't understand what is happening, I will try and sound smart by defining what can cause the "rally" this morning." In order to continue the ambiguity of such an answer, he continues by saying that the causes of such an event are actually "subjective" and that everyone has a different reasoning for the market moving the way it is and that there are so many variables that make it impossible to find all the reasons for the event.

In other words: Bullsh$t :D
 
Quote from sdb5057:

Basically it says "Because I don't understand what is happening, I will try and sound smart by defining what can cause the "rally" this morning." In order to continue the ambiguity of such an answer, he continues by saying that the causes of such an event are actually "subjective" and that everyone has a different reasoning for the market moving the way it is and that there are so many variables that make it impossible to find all the reasons for the event.

In other words: Bullsh$t :D
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Are the newbs getting dumber and dumber on ET or it's just me? :D
 
You could have just surmised the market's movements by simply implicating concepts inherent in chaos theory. Go channel Aristotle's ghost elsewhere.
 
Quote from MAESTRO:

Causality denotes a necessary relationship between one event (called cause) and another event (called effect) which is the direct consequence (result) of the first. Normally, effect is promoted by multiple causes where their relationship cannot be formally established. In this situation the reasoning is highly inaccurate and multiple equally probable explanations could exist. Deduction of the exact cause is highly subjective and only satisfies human’s natural desire to “understand” the reasoning. Unfortunately, we as humans are not fit to accept the possibility of not having the knowledge of a cause. We feel psychologically anxious if the cause could not be explained to us in terms that we understand. This is the reason behind many CNBC statements such as “the markets fell on worries of possible general demand contraction … “ etc. This reasoning does not add any useful information but pleases many humans by providing a “reasonable explanation” to the events that other wise would appear to us as irrational. Many market participants have this disease and cannot learn to exist without the artificial “needle” of the media rationalization.
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Damn.

That's beautiful.
 
Quote from traderdave18:

Seriously,

I understand the supply/demand aspects of the market, but can someone explain to me the big NASDAQ rally this morning.

World markets down, premarket futures pointing down, earnings looking grim...

Hey, let's buy! A perfect time for a rally!

Shut up...

Must be a short covering thing.
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Price discovery.
 
Quote from mister_doodi:

That is the biggest BS I heard this morning. Information is the most prized asset in the world. If you don't know whats going on you'll lose money.
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I agree with Mr R. Rasolnikov


Otherwise (and please permit me to use some redneck logic here)


Let's assume a trader knew every bit of news in the world - How would he / she trade it?


Or asked another way


How could a trader, who knew every bit of news in the world, anticipate any better how all other traders would trade?


Curious
 
Quote from MAESTRO:

Causality denotes a necessary relationship between one event (called cause) and another event (called effect) which is the direct consequence (result) of the first. Normally, effect is promoted by multiple causes where their relationship cannot be formally established. In this situation the reasoning is highly inaccurate and multiple equally probable explanations could exist. Deduction of the exact cause is highly subjective and only satisfies human’s natural desire to “understand” the reasoning. Unfortunately, we as humans are not fit to accept the possibility of not having the knowledge of a cause. We feel psychologically anxious if the cause could not be explained to us in terms that we understand. This is the reason behind many CNBC statements such as “the markets fell on worries of possible general demand contraction … “ etc. This reasoning does not add any useful information but pleases many humans by providing a “reasonable explanation” to the events that other wise would appear to us as irrational. Many market participants have this disease and cannot learn to exist without the artificial “needle” of the media rationalization.
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David Hume has some very interesting points on Causality... acutally, his work is considered some of the best ever written.
 
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