Beware of dead cat bounce in NSE riseQuote:January has been the worst month for investors since 2009, with the market dropping 370 points. To make it even weirder, all this happened despite the absence of any notable catastrophe in the economy or major change in the same.
BD linkWe have always argued in these pages that movements in the stock market (and all financial markets) are
not influenced by outside causes. The guy is wondering why the market has moved south without
any cause.
Movements in the financial markets are endogenous i.e they arise out of social mood which is part and parcel of human nature. The waves of social mood are patterned according to The Wave Principle. That is why they have predictive value.
Those waiting on Safaricom
fundamentals to predict where the share might go
will be disappointed.
Social mood affects everything that you do.
A simple question can be asked. Does war make people angry ? The assumption here is that war
caused people to be angry, but, wait, what caused the war in the first place?
An Elliottician (Socionomist) would reverse the statement to imply that
angry people make war. In this case the proper cause (anger, mood) results in war (effect).
Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.