Sentiment speaks: have you learned your lesson from the market yet?

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Sentiment speaks: have you learned your lesson from the market yet?

Some people never learn. And, when it comes to the market, I would venture to say that most people never learn.

"Stock markets are fascinating structures with analogies to what is arguably the most complex dynamical system found in natural sciences, i.e., the human mind. Instead of the usual interpretation of the Efficient Market Hypothesis in which traders extract and incorporate consciously all information contained in market prices, we propose that the market as a whole can exhibit an"emergent" behavior not shared by any of its constituents.

The best recent example of this occurred on October 13 when the market rallied strongly off a morning low after a hotter than expected CPI report was published. And, the move shocked market participants at the time. Well, that is, most market participants, as we were quite prepared for that rally to begin. Let’s just again review the action around that time to remind you of the perfect example of which I speak.

"Am I the only one wondering what the heck is going on with this market? I feel like it makes no sense anymore.. Today made NO sense." "Thus far, the market has made several attempts at hitting the blue box support region on the 60-minute SPX chart. And, each time, divergences continue to grow. And, if you look at the 5-minute SPX chart, there is still opportunity to actually strike that support below as long as we remain below the smaller degree resistance noted. . .

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Portugal Últimas Notícias, Portugal Manchetes

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