by Jeff Pierce, Zentrader
Below is a great excerpt from a book I’m reading that considers media’s influence on the market. But first I have a similar approach to how I view this I want to share.
On impact days, meaning days where a significant top or bottom is being formed on the markets, emotions are at a high for everyone. Watch the font size for the headlines on Marketwatch and always remember that the bigger the font, the closer we are to a turning point in the markets. I remember seeing a day when the Dow was down over 700 points and the font was huge…and I mean huge. I thought to myself, this has to be close to a bottom and sure enough it was. I have some screenshots of various past headlines somewhere on my external hard drive but can locate them right now so you’re going to have to take my word for it for now.
From Tom Williams – The Undeclared Secrets That Drive The Stock Market
If there is no good news available the news media will simply make it up to explain away the sudden up move taken place on any particular day. Your subconscious mind will be busy absorbing this information whether you like it or not and forming an opinion. To the untrained mind that view will be bullish, therefore you will not have even noticed volume implications telling you otherwise. If all this sounds paranoiac to you perhaps you need convincing. Try collecting all the ‘good’ news and ‘bad’ news articles from your newspaper, record or take notes on television comments about the market. In three or four months time go back and see what exactly happen on that news. You might be surprised to find it is quite a good trading system to buy on all bad news and to sell on all good news.