Saturday, December 12, 2009
Even when there is public concern over the state of the economy, the market does not react in a similar way to all economic data. Some reports seem to be more important than others, and the market appears to focus on one report at a time. The most significant data seem to be unemployment and [...]
Tuesday, December 1, 2009
The market seems to focus on one news item at a time. Although the same factors are always there to affect prices, they must reach a point of newsworthiness before they become the primary driving force. For heating oil, the combination of unexpected, sustained cold weather compared with available inventories will activate a weather market. [...]
Monday, November 16, 2009
The problem of ranking and assigning values to news items requires a knowledge of how others see the news. Klein and Prestbo studied this problem for the stock market and concluded that about 90% of the Wall Street Journal readers perceived news in the same way (bullish, bearish, or neutral). The same relationship can be [...]