From the wires:
Jerry Webman, chief economist at Oppenheimer Funds Inc., said the swift pullback in stocks after the day’s economic readings illustrates the fragility of investor sentiment. He said the market’s volatility reflects an undercurrent of uncertainty and efforts by some traders to capitalize on shifts in the mood. “We react very strongly to bits of news,” he said. “The whipsaw danger is pretty high here.”
I don’t believe that any analyst can accurately predict when whipsaw danger is highest…whatever than means exactly!
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From a reader:
Dennis and Seykota both seem to give the impression that their styles while being interviewed for Market Wizards ‘would become obsolete’ sooner rather than later. Obviously, changes in market efficiencies and inefficiencies lead one to believe that this day has in one way or anotherr come and gone, but there are still fundamentals about trend trading that can definitely be taken from all three books. Have you asked or heard from these type of upper echelon traders in recent years, with regards to the changing technology of the market environment and the affects this has had on the ability to trend trade? One must almost force themselves to be somewhat of a day trader in order to secure winnings and yet, there is always that trend that still develops and carries on for a great amount of time, whether or not the market is chopping.
There are plenty of trend traders trading their trend following methods doing quite well and have been for decades. I am not so sure anything about markets has fundamentally changed. There are still trends caused by the buying and selling of human beings. That seems eternal.
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New Michael Covel blog can be found here.
I have setup an Online Afterword for "The Complete TurtleTrader" that adds even more detail. These are insights, nuggets, and narrative pieces not in my book, but only presented online.
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