Price Time Volume Investing

I rarely debate with people about market moves and the fundamentals behind the moves. I look at the market from a different perspective than most.

I believe that the price/time equation drives the news. Fundamental information is nothing but a by-product of market action. Turn down all the TV sets and disconnect the internet from the world. My assumption (and the basis of my work) is that price will move exactly the same than it would with the back ground noise turned on.

Ever notice that a fundamental story is written entirely different when the price of the stock goes down versus when the price goes up on the same fundamentals? The “news” is slanted to the direction price moves. Analysts evaluate “fundamentals” based on the direction the market is moving the stock. The “story” evolves over time based on the price action of the stock.

Most others in the market believe that the news (and fundamentals) drive price. I disagree and therefore am not in a position to debate “why” the market does what it does. I can only guess at “what” the market will do.

Post Modified: July 3rd, 2008 at 12:32 am

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