Sign in     Like us on Facebook Follow us on Twitter Watch us on YouTube

News and Blog

Join 5000 other sharemarket traders for regular blog updates!

Browse to a category

Blog Search

Normal Markets

Whilst I was away at the weekend this bounced into my inbox for comment (I don’t know the original source)

SPZ s rallied 13.75% from the pre-NYSE open low on October 4 to October 12 high. Normal markets do not rally almost 14% in 6 sessions. Normal buyers do not behave this way. Volume was lacking on the rally; there was little real buying. The compelling question is: Who forced SPZs higher and why?

There are a few things in here I find interesting. The first is that there is an assumption that markets should behave in a given way that one can and should  interpret as normal. My view is that since markets are merely an aggregation of individual emotions then it could be argued that they are always normal in their behaviour. An extension of this is that something is happening that cannot be understood – not understanding something and then believing it to be not normal because you cannot understand it is a mighty leap.

More disturbingly is the belief that someone or something must be behind what cannot be understood. This is magical thinking in the extreme.

email

Speak Your Mind

*

General Advice Warning

The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.

email