We think it has been a ridiculous debate for some time, The Fundamentalist spend countless hours scouring economic news, earnings estimates, calculations, headlines, etc.....
In today's market, the computer trading programs control 70% of the daily volume. You must understand patterns, resistance, support, moving averages, etc...
The Markets formed a "double bottom" between mid January and mid February. Despite the unbelievable negative "fundamentals" that continue to play out, the markets continue to go higher and higher. Everything you know as a "Fundamentalist" has been turned upside down. You can "Blame it on The Fed or Central Bankers" if you want to cry and try desperately to explain why your entire life you have spent learning fundamental analysis is causing a short circuit in your brain and the continued loss of your capital. "Dreams turn to nightmares and heaven turns to hell"
It is getting to be comical how the financial experts in the media are completely lost when it comes to explaining how the markets work. Nobody wants to identify " The Elephant in The Room" - technical analysis and algo trading programs. You know, the voodoo that is constantly ignored. I hate to tell you that it is the only thing that has mattered in the markets the last 5 years. All those late nights studying fundamentals and reading books about the great investors - throw them out. You can now spend 5 minutes looking at "the charts" and throw hundreds of millions of dollars into trades without reading any reports or a deep understanding of the company fundamentals or financial concepts.You can make happy hour by 6:00pm and collect a huge bonus for "your hard work" and outstanding performance! Simply do a "cut and paste" from some egg-head about why the markets are doing what they do. Make it as complicated and counter-intuitive as possible....and Poof! You are a genius.
The best performance has been by those who spend less than 5-minutes looking at a chart, turn off all the news, ignore all the fundamental financial analysis that has been put forth by some of the greatest minds in the last 100 years, and believe unequivocally that the markets will always go up because that's what is now expected and supported at all cost by....
Now that you know the scoop.....enjoy the ride!
