Question Your Beliefs As To What Drives Markets

Most everyone seems to believe that the spike we got in the markets at the beginning of the week was because we were going to negotiate a deal with Iran to bring the war to an end.

Today, Iran rejected the proposal we put on the table. So, why is the market still green . . and almost by 1%??????

IT is these inconsistencies in these mechanical paradigm views of markets that should make you question your beliefs as to what drives markets.

I would like to repeat this quote again, as it is sooooooo important:

“Observers’ job, as they see it, is simply to identify which external events caused whatever price changes occur.  When news seems to coincide sensibly with market movement, they presume a causal relationship.  When news doesn’t fit, they attempt to devise a cause-and-effect structure to make it fit.  When they cannot even devise a plausible way to twist the news into justifying market action, they chalk up the market moves to “psychology,” which means that, despite a plethora of news and numerous inventive ways to interpret it, their imaginations aren’t prodigious enough to concoct a credible causal story.

"Most of the time it is easy for observers to believe in news causality.  Financial markets fluctuate constantly, and news comes out constantly, and sometimes the two elements coincide well enough to reinforce commentators’ mental bias towards mechanical cause and effect.  When news and the market fail to coincide, they shrug and disregard the inconsistency.  Those operating under the mechanics paradigm in finance never seem to see or care that these glaring anomalies exist.” – Bob Prechter. The Socionomic Theory of Finance

Wake up and open your eyes to the real world . . . not the matrix you believe it to be!!!