My new theory of technical analysis -- aka NIPI -- was designed to "confirm" bullish "fundamentals" and has generated a BUY signal on SPZI.
NIPI = "negative Ihub post index"
TA and charts actually measure the "past" emotional response upon "past" PPS in order to predict future PPS.
In the alternative, NIPI charts various negative social information to confirm "fundamental" strength of a stock play, not future PPS although this is somewhat predicted as well, but more on a general level than as to specific price movements over spans of time.
Most people use TA to guess future PPS, but I am charting negative posting activity to confirm DD on fundamental analysis.
Negative posting on SPZI has triggered a NIPI BUY alert for the stock.
Here's the concept and how it works...
Step 1:
The mean psychology of the subset must be considered.
- The average poster on IHUB is trying to make money by investing.
- Every IHUB poster has limited time and energy to post here since both resources are limited for every member of the subset.
Basically, TIME = MONEY
- The average member of the subset will use their time and energy attempting to generate bullish interest in stocks they own by posting positive DD and comments.
- The average member of the subset will SELL their holdings when they are convinced the stock will fall.
ANOMOLIES:
- The most important chartable anomaly occurs when an Ihub poster who says they are long on a stock breaks from the normal activity of the subset by posting negative sentiments about that stock.
Since typical TA is generated by emotional response, negative posting does in fact influence PPS, and therefore anomalies wherein posters attack stocks they own are given more weight than negative posts by those who do not claim to be long in the stock.
- Anomalies also occur and are charted when posters who do not claim to be long generate excessive negative posts as this depletes time and energy which most members of the subset regard as precious and best used to make money.
- Recent news is also factored in to measure increases of anomalies against time periods where the stock has NEWS come out.
- The frequency of anomalies generates a NIPI chart.
NIPI anomaly analysis (say that ten times fast) assumes that Ihub posters being charted are, in fact, trying to make money on the stock being charted. But NIPI analysis just assigns a different kind of profit motivation to them.
My NIPI analysis is a brand new form of TA which has not ben tested, so please do your own DD.
I have decided to react to the BUY signal generated by my NIPI analysis because of the frequency of anomalies evidenced by the rather large increase of negative posts concerning SPZI since the 141 NEWS came out.
As the NYC conference approaches, I expect to see an even greater increase of anomolies.
