hmmmm careful ... the finance academics who believe that technical analysis is literally nonsense, the equivalent of astrology, are very much the old guard, and are clinging to the principle in the face of mounting evidence that there is something to it. Andrew Lo and Craig McKinlay of MIT have even published a book entitled "A Non-Random Walk Down Wall Street". This sort of phenomenon has now been pushed down into "microstructure theory", the idea being that the push and pull of supply and demand, the stuff which tape-reading is made of, can be quarantined as being equivalent to a tatonnement process which does not affect the conclusion that stock market investors in general set prices rationally.
dd -----Original Message----- From: Doug Henwood [mailto:[EMAIL PROTECTED]] Sent: 25 July 2002 16:42 To: [EMAIL PROTECTED] Subject: [PEN-L:28473] Re: Re: RE: Market correction Michael Perelman wrote: >Doesn't the term "market correction (rebound) work like the description of >the Middle East "peace process" -- suggesting a hope rather than >information? No. As DD pointed out, a "correction" is a move counter to the larger trend. A correction in a bull market is a downdraft of up to 10%; in a bear market, an updraft of no more than 10%. When the move exceeds 10%, you start thinking about redefining the trend. This is all demotic market-speak; many finance academics view this stuff as little better than astrology. Doug ___________________________________________________ Email Disclaimer This communication may contain confidential or privileged information and is for the attention of the named recipient only. It should not be passed on to any other person. Information relating to any company or security, is for information purposes only and should not be interpreted as a solicitation or offer to buy or sell any security. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change without notice. All e-mail messages, and associated attachments, are subject to interception and monitoring for lawful business purposes. (c) 2002 Cazenove Service Company or affiliates. Cazenove & Co. Ltd and Cazenove Fund Management Limited provide independent advice and are regulated by the Financial Services Authority and members of the London Stock Exchange. Cazenove Fund Management Jersey is a branch of Cazenove Fund Management Limited and is regulated by the Jersey Financial Services Commission. Cazenove Investment Fund Management Limited, regulated by the Financial Services Authority and a member of IMA, promotes only its own products and services. ___________________________________________________
