Rally Update

This is part two relating to my last post. Are you convinced or unconvinced this rally had nothing to do with generally available news data as I wrote in the last post? Remember that stocks never go up or go down in a straight line. There are short term, intermediate term, long term and very long term movements. Those are measured in days, weeks to months, years and decades. Above is a short term buying pressure measurement. It started to turn up when? The day of the rally as stories in the press would have you believe? No. It bottomed and turned up on the 23rd. Five calendar days before the rally. This rally had little to nothing to do with stories reported in the press on the 28th.

As someone who is generally a contrarian on many issues, this is an important point I want to make. The press is notorious for assigning rallies to events reported that day. I have talked about this before. Most specifically on days the Federal Reserve announces rate decisions. In effect, the media tends to lull us into a sense of "drone-ness". Where we become lulled into a sense of false reality based on their often insight-less insight. Everything you've read in the newspapers as to why stocks rally or fall on a specific day are more likely to be wrong than right. Not just this week but for eternity. Correlation is not causation. Just because news was reported on a particular day doesn't mean it had any more impact on the markets than weather in Siberia. The media has their own biases and agendas. And, they are easily manipulated by politicians, Wall Street or whomever. So, what other data reported by the press is also suspect? Something to think about..........

"The man who reads nothing at all is better educated than the man who reads nothing but newspapers."
--Thomas Jefferson

Let me update that quote to the twenty first century. Replace newspapers with magazines, the internet, television, newspapers, radio and any other form of generally available media.