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Old 03-10-2005, 00:50   #40
TraderABC
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Re: Does PAST price action determines future price action?

Quote:
Originally Posted by narafa
Can you please give more information about this study?? I understand that the stock market is a leading indicator of the overall economy, because more than 70% of stock investors actually buy the future and are not interested in the history of the companies. The GDP however is a historic measure, and it is revised, so it only tells the investors if they were correct in judging the prices of stocks correctly 6 months ago or not. The GDP estimates for the future are non-sense, nobody take this into consideration unless there is a huge increase or decrease in the estimated GDP figures.

So as you can see, the GDP should not actually affect the stocks. People only take the numbers when they are released inline with expectations to assure that they are to somehow correct about their future view.

Thanks,

Nader

when I'll find it in english (or similiar studies), i'll post it.
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