|
PureBytes Links
Trading Reference Links
|
In a message dated 7/23/99 3:33:46 PM Pacific Daylight Time,
editorial@xxxxxxxxxxxxx writes:
<< Chuck baby! If we knew when they were coming they wouldn't be "shocks"!
>>
Most of the time we do know when an important event is scheduled. We know
when and where Greenspan will speak but we may not know what he is going to
say or how the market will react to it. We know when the Fed is meeting. We
know when the employment reports are scheduled. We know the dates of the
government crop reports, the CPI, the money supply, the corporate earnings
reports and on and on. As technicians we also know when volatility is
abnormal. You are right that we obviously can not avoid the shocks that we
don't know about but I think we can avoid more than most traders suspect.
A lot of discretionary traders don't pay attention to this stuff on the
assumption that they can quickly adjust to whatever the news may be. A lot
of systems traders feel they are obligated to follow the system output
regardless. I think that both could improve their risk adjusted returns by
being a bit more alert to what is going on in the world. (This must sound
strange coming from a systems trader.)
Chuck
|