Market Action And Reaction

We've just published a new T2W article called "Market Action And Reaction" by Richard Ratchford.

Quick Summary: They say that every action has an equal and opposite reaction, but what exactly are the 'actions' that effect the stock-market and how can we adapt and trade them successfully.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

What a wierd article

GJ

It'll be even weirder next Sunday night/Monday morning at 00:48 GMT.

The equal and opposite thing by the way, it's just a construct, and it hurts me physically when bods try and bend Newtonian Universal models to non-Newtonian ends, it simply doesn't work. And the full moon/new moon murder thing: Could be because it’s easier to see your victims and easier to get away respectively. Or maybe it's the police forces that are the cause. Perhaps more officers take time off or are sick at those times. There's a real danger of too narrow a view and too short a chain of cause and effect.

BTW - if the bird’s wings exerted exactly equal and opposite force then it would have very few feathers on its belly.

I agree the article didn't actually go anywhere, but then it didn't promise to nor did it really start off from anywhere too specific either. So a nice gentle ride.

Pre-fundamental analysis perhaps?

my 4 year old is better at getting to the point

studies have shown that people in psychiatric hospitals are more likely to have their symptoms increase / do more self-harm concident with moon-cycles.
and numerous animals / plants have moon-cycle connections. cant think of any examples, but Lyall Watson (Supernature) has many.

if humans are placed in mines where they cannot see the sun, their bodies revert to 25-hour days, which is time taken for moon to be at same point in sky per day. (I think)

agree it was a bit of a wide-ranging and vague article. could have mentioned solar-particles etc!

agree with TheBramble about force-fiting Newtonian mechanics to trading, especially when Keplerian laws may be more appropriate! (sorry)

the word lunatic comes from latin for moon.........err....2,000 years of empirical evidence of your point.

j

Very interesting article that should be considered as a primer. If the author had made references to some of the great traders that used cycles and lunar cycles the article would probably been better recieved. None the less everyone should read the article and apply it's thoughts to back testing for possible inclusion into their trading plan.