Re: Market timing
Hi goode
Goode, what is your view on the opinion that market timing, i.e. taking advantage of some known cyclical pattern in markets, is of absolutely no use. While these trends undoubtly exist some would say that it is impossible to take advantage of these trends. If it was possible to take advantage of these trends then the cyclical patterns would quickly dissapear due to market efficiency.
Further, I have read with interest your recent posts and would also ask you what your response is to the evidence that technical analysis is an exercise in futility - in terms of predicting market/stock price movements. Compelling academic evidence suggests that the past price movements of a market/stock have no influence on their future directions (weak form of efficient market hypothesis). Thus how can technical analysis be of any use?
coughman- martha stewart recieved information from her broker that Imclone (which she held a modest stock holding in) would not recieve FDA approval for erbitux - an EGFR monoclonal antibody and cancer therapy - before the FDA actually released its official verdict. Thus stewart acted on inside information, not market timing.
regards
graeme
|