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Oppenheimer Holdings Inc. Message Board

  • superbmindset superbmindset Nov 7, 2011 9:21 PM Flag

    Positive Behavioral Catalyst: OT

    The realization that a European  focused US market does not react in this manner, has finally forced market gurus to switch their attention to the new behavioral trends.  This is a pragmatic approach, since historically we have not witnessed such sustained discipline and market inaction to negative headline news.  

    It is a nightmare to the trader and more significantly, the news reporter; a development completely transforming the typical market function.  

    And although the realization that stock market movements are now led by a new behavioral trend rather than old news, has changed most analysts' thinking, it has still not grabbed news reporters' attention!

    As traditional behavioral trends are now transforming, reporters are still focusing on the NO NEW news coming out of Europe! 

    And when they can no longer justify their European thesis by watching market price reaction, simply because the price action is contrary to what they are reporting, they continue to try to link any news that will confirm their European obsession... 

    One might ask, how are you certain that market participants are not Europe focused?  And if not, where is their focus now?

    First, I have pointed this out a month ago.  And the price action in October I believe should've been proof enough.

    Second, I guess you can probably see where I'm going with this in applying the term OT, in todays message title, to the past few days’ stock market action.  

    It is clear to me that investors, despite the media's attempt to downplay "operation twist", have realized that OT is superior to QE and QE2 combined!!

    And all this happened while the bears are being "trapped" in believing in the insufficiency of OT!

    After Note: Absent of a singularity event, I will be very surprised if the price action does not prove my suggestion above to be true...and as always...

    Just my humble opinion!

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    • So are we watching what Europe is doing and react to the news?  Or is Europe and the rest of the world watching us, and more specifically the Fed?

      Well the news out of Europe from Tuesday till Wednesday were unchanged.  The market rallied on Tuesday and plummeted on Wednesday, so what caused this change?  

      Surely, gold, oil and other markets should have reacted to the same news but they didn't.

      So why are equities' price action different?

      The Fed has the option of more stimulus through QE or OT, which would help the equity markets, but it also can use another tool, that could potentially hurt equities...

      In my opinion, the Fed's move today spooked the equity markets as they are now fearing it's next move.  

      If you watch the Fed and know where the Fed Chairman spoke this morning before the opening bell, you would know what I am referring to...

      I am personally watching the Fed to gauge the next directional move of the stock market..

15.00+0.05(+0.33%)Oct 21 4:02 PMEDT