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At Sun, 28 May 2000 11:07:36 -0600, "Gary Fritz" <fritz@xxxxxxxx> wrote:
>
>OM wrote:
>> So let it be clear that I am not the one suggesting the use of
>> causal reasoning. Intermarket analysis suggests that x causes y.
>> I am simply pointing out that while x may correlate significantly
>> with y, that is no proof of the *causation* that is sought by
>> *intermarket analysts*.
>
>I think you're making an unwarranted assumption -- that people trade
>using intermarket analysis because they believe in a causative
>relationship. I believe many people who use intermarket analysis
>could care less whether X causes Y, or Y causes X, or parakeet causes
>kumquat. They've just observed that there is a high degree of
>correlation between X and Y, and they've devised rules that allow
>them to trade profitably using that correlation, and that's ALL they
>care about. They aren't diving deeply into the ontology or
>epistemology or philosophy of the thing. They're just trying to make
>money.
>
>Gary
I agree Gary. Although not necessarily intermarket analysis, isn't the NIKKI/NASDAQ
"correlation" playing out? Tradable? Hey, whatever works... making money
is the bottom line. And your bottom line with tell you if you methods/philosophy
is correct.
DT - GO LAKERS? ;-)
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