|
| The news is often in the market before you read about it or see it on TV. Markets often "anticipate/discount" ahead and make a major top when the news or fundamentals are very bullish/positive. Vise-versa for bottoms.
The fundamentals such as exports, weather, yields, etc. are also often in the market before you read about them or see them on TV.
Rather than what should a market do the better question is what is it doing and buy the pullbacks/retracements/dips or sell the buldges, extended price, overbought market. Then, have the self-discipline to get out quickly, take a small loss if the market proves you wrong And...........be able to do this consistently. NO SMALL TASK !!
There's a saying: "Most of the news and fundamentals are already in the market price." (At nearly any given point in time.)
News and fundamentals lead you to what a market "should do." This usually leads to stubbornness and big losses. In other words, hanging on and hoping.
It's always good to realize that, most of the time, there's nearly always really smart people on both sides of the market !
Don McCullough
| |
|
News, fundamentals and the markets
