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Re: Estimated_Prophet post# 105052

Sunday, 05/01/2011 10:35:13 AM

Sunday, May 01, 2011 10:35:13 AM

Post# of 312016
It is very interesting to follow the 'controversy' - if that's the appropriate word - between fourkids and Estimated P because in principle the only difference between them seems to be the scope of the influence of shorting on daily market movement. In modern practice shorting has become almost a 'fundamental' factor in itself, and 4's detailed analysis of daily operations puts its effects under a microscope. It does not contradict basic causes for a stock's movement - if I understand correctly - but studies the result of a particular factor on fluctuations. I believe that in ancient days shorting was not permitted and simple fundamentals ruled price performance directly. (It took 3 days or so to register the paper involved in any transaction, imagine that!)
Is'nt the difference between the theories a matter of micro and macro views? The only problem is that, sadly, neither one can tell us what will actually happen before it happens on Monday morning!