Soham Das

Capital Markets Defy Terrorists

Interesting perspective.... but the crux of my opinion is that the general social mood defines market.

In a bear run [which in turn is an exhibition of increasingly negative social mood] companies who underperform get hammered but those who generate results outside street's expectations [positive] just stay placid. The situation just reverses in bull market.

Information will be seen from a general lens of social mood. And to say that 'this' news made the markets rally high is flawed. You might say the social interpretation of so and so news made it rally high.
And this social interpretation is decided by prevalent social mood

Capital Markets Defy Terrorists

You are making a mistake in believing that news makes or breaks a market. Run some historical check, and you will realise that if you show the charts without the time stamp to any other technical analyst, and ask if he can point out the most probable time a bad news hit the market, he will fail.

Because markets are dominated by crowd behaviour and crowd behaviour is essentially emotion driven and not logic driven, thus expecting it to rationally analyse the situation while a news hits the market is irrational in itself.
We are forgetting, markets are not efficient.

A few words delving deeper in this arena is given here:

jumpup.wordpress.com/2.../

Thursday's Stock Rally Means Little to Trends

Fantastic work!!!