Proof of why we are not using fundamentals in the market
Today is yet another example to show that the market movers are not using fundamentals to trade, they are using technicals.
http://www.reuters.com/article/2012/07/ ... ss+News%29
The number of Americans lining up for jobless benefits last week fell to a four-year low, a hopeful sign for the struggling labor market although some of the improvement may be temporary, government data showed on Thursday
Good news right? but yet, the US market has gapped down and dropped right at the open. Why you should ask yourself?
http://www.finviz.com/
DOW - 78.79
Nasdaq -42.44
S&P -13.71
It isn't fundamentals is wrong or anything, it is just the market movers (institutions) are looking at charts and technicals to determine when to buy or sell. As my teachers (that worked in Chicago trade floors, big market makers companies) have told us before, they use charts to trade.
The famous saying:
Fundamentals is where price should be
Technicals is where price is
News can lie, people can lie, charts cannot
Its a simple Demand vs. Supply. You BUY at Demand, and SELL at supply. How do I know where Demand and Supply is? Its ALL there in the charts. Just learn how to read it.
http://www.reuters.com/article/2012/07/ ... ss+News%29
The number of Americans lining up for jobless benefits last week fell to a four-year low, a hopeful sign for the struggling labor market although some of the improvement may be temporary, government data showed on Thursday
Good news right? but yet, the US market has gapped down and dropped right at the open. Why you should ask yourself?
http://www.finviz.com/
DOW - 78.79
Nasdaq -42.44
S&P -13.71
It isn't fundamentals is wrong or anything, it is just the market movers (institutions) are looking at charts and technicals to determine when to buy or sell. As my teachers (that worked in Chicago trade floors, big market makers companies) have told us before, they use charts to trade.
The famous saying:
Fundamentals is where price should be
Technicals is where price is
News can lie, people can lie, charts cannot
Its a simple Demand vs. Supply. You BUY at Demand, and SELL at supply. How do I know where Demand and Supply is? Its ALL there in the charts. Just learn how to read it.