Traders don't trade market, they trade their beliefs about the market.
We hear all the time - Market is expensive Market is cheap. I don't believe this rally. There is no fundamental justification....blah blah blah. Do you think the market really cares what you think?
The argument does not matter
If you're seeking a bullish or bearish data point, you will find it
— Keith McCullough (@KeithMcCullough) March 8, 2017
What matters - What market thinks
The Market has a mind of its own. It can be right or wrong but it is the market that sets the prices and hence it's opinion counts more than anyone else. Hence, one should never question the market but ask a simple question - Why the market is doing what it is doing.
Why market has rallied so much in last 6-9 months: Stock rallies typically don’t die from too much skepticism.
In the month of June-August 2016 - almost every major influential investor came out with call - Sell everything.
'Sell everything,' DoubleLine's Gundlach says: NEW YORK (Reuters) - Jeffrey Gundlach, the chief executive of ... https://t.co/3GE1J28hKb
— J. David Morris (@JDavidMorris) July 30, 2016
Just imagine how stupid this sounds today. Here's one thing always remember -
When it comes to financial markets: Here's the basic fact -
"Market commentators know absolutely nothing and pretend they know everything"
— Deepak Singh (@smarket) June 26, 2016
People have strong opinion on markets but it is the opinion of the market that counts. The market Opinion can only be captured by following price action. How following Price action helps...This is what I wrote on June 26 2016
Here's one Golden Fact:
Nobody knows the future. Hence, never get carried away by what others think. Focus on what market is doing right now, not what it should or what it will do.
Please share your comments on what you think of market observations, market and trading in general
How Price Action captures changing Fundamentals? - Read a fascinating Case Study
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers