Sunday, June 17, 2012

Does the news move the market, or does the market move the news?

This is a question to ponder as we move forward through the upcoming news events the rest of this year.  Elections around the globe, federal bank easing rumors, natural disasters, etc all seem to "move" the market.. but do they really?  In my development and observation of the RumWave I have reached a conclusion that the news outlets are often clueless about why the market is doing what it is doing.  

I distinctly remember listening to CNBC one day as I was driving in my truck and hearing a commentator say "I can't figure out why we are up today!"  I, however, was armed with the knowledge of the RumWave and had anticipated the upward move.  For the rest of the day the media superstars were grasping at straws to create a story that explained the market's bullish behavior.  

Sure, sometimes a major news story (like a nuclear power plant explosion) happens that causes an unexpected turn but those are few and far between.  I truly believe that the markets go where they want to go, and news stories are constantly lagging the fight.  When a story seems to move the market, I find it to be at a time when the market was ready to go that direction anyway.  I also always try to remember that all those reporters get paid to keep my attention locked to their network, newspaper, magazine, etc.  If it bleeds it leads, and if it scares us bad enough we won't change the channel.  

Special Thanks to our International readers!!!  

This blog has gone global in the blink of an eye.  Readers from all over Europe, Australia, Canada, and the US are catching onto the RumWave.  Thanks so much for reading!  I never thought someone in Australia or Lebanon would be reading these ideas.  Best luck to all of you and your investments!

Happy Father's Day!

For the Dads out there that bust their butts trying to provide for their families, well done!  Let us never loose sight of why we spend time trying to beat this market.  For most of us, it is to provide for a college education, pay for weddings, buy that first car, or just keep the electric bill paid.  My aim is to help you keep that commitment with this trading method.  Enjoy your day!

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