Second Post

Sunday July 1, 2012

Reality changes in a heartbeat.

One minute the world is black: "Stocks in a world of Hurt" says the Marketwatch headline. Then the Europeans decide that banks can be re-financed without increasing national debt numbers. Suddenly, the world is green again. The Finviz triple stock maps looks like pendants waving in the breeze - straight up and across all day.

The ups, the downs, have nothing to do with the companies in question. It’s become almost pointless to read company news - not really, individual issues still have effect. But something can drop on world news and just stay down, with absolutely no difference in sales, staffing, lunch room policies..... just suddenly be worth less because some idiots thought the Euro was a good bet. Then, Germany concedes an inch of policy. Now people are buying more shoes? Coffees? Tractor Trailers? It’s all up, regardless.

It’s fascinating to watch a stock just before it tanks or soars. For a few minutes it goes rapidly up and down. If you own the stock you have 1000 dollars, you have 10 dollars, you have negative 1400 dollars, you have 600 dollars... flashing all in seconds. Money goes from being something that represents hours of work to.... something that only exists in theory and can vanish and appear in the blink of an eye. Suddenly something like buying a 700 dollar bottle of wine becomes more comprehensible. That money could vanish tomorrow and you’d have nothing for it anyway. Twice that could appear a minute later. Meh. Whatever. If you’ve got it, splurge. Didn’t someone from Oracle just buy the 6^th largest Hawaiian Island?
　
　
Meanwhile these professionals are writing articles about technical trading patterns. Like,

"at least until the market breaks down below a Fibonacci support level within our Fibonacci Pinball analysis"

(Avi Gilburt Marketwatch Trading Deck Sunday July 1, 2012)

..... truly.

I feel like someone hearing a tarot reading.

Avi, do you wear a robe with wee stars embroidered? One piece of European news and your support levels can pinball to their hearts content.