GM board...well Don we differ greatly in our opinions on the market being rational ...I see the market generally driven..especially the FOREX market..by irrational exuberance..Greenspan coined that phrase BTW in a 1996 speech in which his use of the term caused asian markets to drop over 3% and US market to drop over 2% immediately after he said it.It was the market that proved his point(LOL) Its my opinion that the market is very irrational a lot of the time but on the other hand I see it as very orderly..there is sanity within the insanity.As far as understanding the language it speaks I agree..its speaking an unknown tongue but a well designed chart is the interpreter.I dont have to speak the language to understand it..the chart speaks for me and I manage to make a few bucks by listening to it. Give you a good example of obviously irrational market behaviour..take USD/JPY as the basis.In july 2007 it traded at 124 then began trending down and trend lasted til nov 2011 at about 75 for bottom.Thats totally irrational because it assumes that the yen had much greater value than the USD during this 4 plus year period of decline.Yet the chart shows clearly that the decline was quite orderly.It was orderly in trading but irrational as far as any fundamental reason for such a decline of USD against the Yen. I see the market as irrational due to driving factors such as fear..panic..greed.. downright bipolar disorder and the fact that fundamentals are largely ignored as markets often move in the opposite direction that would logically be dictated by fundamentals and/or yield. I dont try to argue with a sick mind as joe walsh's song goes..I just use the chart to enjoy and make money from the music(LOL)
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