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Market Comments: Lots of Words, Little Meaning

ilene's picture




 

Market Comments: Lots of Words, Little Meaning 

By Paul Price

To fully appreciate just how useless technical jargon and charting can be, read the words line by line. Here's an example:

Screen Shot 2013-02-26 at 5.01.04 PM

This was published early on Tuesday, February 26, 2013, following yesterday’s greater than 300-point intra-day negative reversal of the DJIA.

1)    The analysts and commentators warning about a market peak could indeed be correct.

Indeed they could; it’s hard to argue with that.

2)    Perhaps a major top is in place.

Perhaps. 

3)    They could be wrong as well.

That’s always a possibility. What action does that suggest?

4)    The market could be presenting a bear trap.

It might be. What action does that call for?

5)    If support levels hold, or are temporarily breached…the market may move higher.

If the market doesn’t go down, and stay down, it may go up.

6)    Any true breaching of the support level may indicate a significant correction.

If the market goes down significantly, we might be in for a down market.

7)    Plug your ears and watch the charts.

We will only know if Monday’s action was a buying opportunity or the start of a correction after it’s too late to do anything about it.

The true value of the shares we buy does not vary based on market action. In the absence of any company-specific news, lower prices are good for investors with money to commit to new positions. 

 

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If you haven't yet, read the latest MarketShadows Newsletter: February 24, 2013: Not Done Rising, But Night Will Come  

 

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Thu, 02/28/2013 - 13:12 | 3286283 Eumaeus
Eumaeus's picture

I was just reading about the "Postmodernist Generator" - an algorithm that randomly generates essays in the style of Postmodern Discourse.

I wonder what we'll get when we apply the same approach to sell-side (or management) language? Are analysts capable of recognizing a mockery of their own work?

 

Thu, 02/28/2013 - 11:27 | 3285755 SAT 800
SAT 800's picture

"Lower prices are good for people who have money to commit to new positions"==="Averaging down". Perhaps the most thoroughly dis-credited trading theory of all time. "The value of our stocks doesn't change with the market price"---"A thing is worth what a man will pay you for it"---The value of your stocks certainly does change with the market prices. Attempting to insert "Philosophy" in a discussion about reality can be very mis-leading. The greatest stock trader of all time, Jesse W. Livermore said, "It's a matter of discovering which direction it's easiest for the market to move; up or down". At the present time, I think it's "easier" for the market to move down, as prices are very high. But, that's just an opinion. I covered my S&P short at zero loss when the thing, (I often think of it as "the thing"), rebounded. Today I shorted the EUR/USD from 1.3136; basis June. The French economy is starting to smell like cheese that's past it's sell-by date; and BMW customers are buying Lexus; can't have that. They'll take steps to rejoin the great competitive currency destruction. And on that subject; also bought Dec.'13 Silver on the Comex. Once again, the Comex is not a silver store; I'm just interested in some Benny Bucks to spend for Christmas. So don't don't have a fit. I buy real Silver at Bullionvault.com.

Thu, 02/28/2013 - 11:18 | 3285715 rsnoble
rsnoble's picture

Markets are beyond topped out but if they keeping pumping billions...trillions.....and pushing buttons who knows.  Just when you think they look weak as hell you have near a 200pt up day but that was a backdrop for LordBen.  No kidding.  If things go down today or whenever Ben will say "well it wasn't my fault, must be something else".

Fuck these goddamn clowns raw.

Thu, 02/28/2013 - 10:15 | 3285434 pashley1411
pashley1411's picture

In the Land of Greater Sheepple, you are assuming language is to be used to communicate ideas.   Child, where did you ever get that notion?   When the Pied Piper took the kids from Hamelin, what were the words of his song?   who cares.   

In a prior life I worked at a Department of Energy lab in my budding scientist days.    The head of the lab periodically interrupts work to gather everyone into an auditorium to give a speech, because, hmm, that's what lab heads do.    One guy in particular was a master of the "Zen" address; absolultely nothing, sentence after sentence, for an entire hour.   Truely masterful, guy was made for the job.     

Thu, 02/28/2013 - 10:51 | 3285586 d edwards
d edwards's picture

Lots of words-little meaning: should be the motto for Business Insider!  :-D

Thu, 02/28/2013 - 10:20 | 3285449 Fuh Querada
Fuh Querada's picture

One British MP asks the other:
"What did you say in the parliamentary budget debate today?"
The other replied;
"Nothing, absolutely nothing"
The first MP:
"Yes, yes, of course, but how did you phrase it?"

Thu, 02/28/2013 - 12:51 | 3286167 SAT 800
SAT 800's picture

Very good.

Thu, 02/28/2013 - 10:02 | 3285401 LawsofPhysics
LawsofPhysics's picture

There is no value in this persons labor - off with his head!!!  Tick-tock, you paper-pushing motherfuckers!

Thu, 02/28/2013 - 09:40 | 3285320 Dead Canary
Dead Canary's picture

Let me try to condense this:     (mind you, I'm not a professional)
The market may go up. The market may go down.
If it goes up, buy. If it goes down, sell.

What are your thoughts?

( And people get PAID to write this. Is this a great country or what! )

Thu, 02/28/2013 - 08:51 | 3285200 Charles Wilson
Charles Wilson's picture

Hegel wins!...Hegel wins!...Hegel wins!...

Das Noumena ist kaput!

 

CW

Thu, 02/28/2013 - 07:57 | 3285112 Jack Sheet
Jack Sheet's picture

What is described here is overdue but unfortunately par for the course for practically all the TA published on ZH and elsewhere, with the ridiculous moving averages, RSIs, MACDs and other goat-entrail-like entities. People w a n t to believe that future prices can be predicted from chart formations, and you cannot stop them.

Thu, 02/28/2013 - 02:06 | 3284759 Aquarius
Aquarius's picture

We appear to have reached a plateau where language carries only instability and uncertainty, not to consider insanity.

Nothing or little that I read these days makes any sense whatsoever; Alice in Wonderland comes to mind.

Is language or indiom a measure of chaos? Has language and tongue defaulted to the venacular, that is, crude and vulgar?

Has this occured before in written history? The answer to this is that it has, indeed,

and

always where Empire or Collectivism burns culture from its domain.

Just as the collectivist bureaucrats and bankers are destroying the cultures of the European Nations for the sake of State, a Marxian concept that subordinates man, the whole Western block, particularly the USA, is following suit.

Culture is the true "money" of Society and Society is the true nature and expression of civilzation,

and

where the idiom thrives in integrity with the esoteric prophecies of the Arts and music.

I would posit here, that the lack of integrity of todays venacular, or better, the irrationalities of today's medium in language,

is a sure sign of the total breakdown of Society.

Suggestion for the skeptics: Listen to those of the UN, FAO, World Bank, IMF, etc. They all talk meaningless gobledebook. 

MSM = WTF?

And, what is Obama and his ilk talking about? Bernanke?

"Our Gods have deserted us" - ("Julian Jaynes) (and why wouldn't they?)

Ho hum

Thu, 02/28/2013 - 13:10 | 3286233 Manthong
Manthong's picture

“Is language or indiom a measure of chaos?”

The perceptive will understand that the increasingly vacuous vernacular is a precursor to chaos.

What passes today as sane explanation is an evil envelope for unsound behavior that is undermining almost everything that is of real value.

This applies to cultural as well as fiscal affairs.

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