People want to know where the orders and stops are. Which way the market's leaning for the algorithms to attack. From this vantage point, Bloomberg's Richard Breslow notes, we get all sorts of trading rules that boil down to stressing technical and risk discipline over any notion that understanding the fundamentals is relevant.
And, of course, this has fully ingrained into our psyches that "it's better to be lucky than smart."
Looking at it this way, Breslow explains, the Fed was dovish in their minutes yesterday. After all, the dollar got hit, bonds jumped, equities leapt. How could you read it any other way?
The only problem is, they weren't.
And while the market did a good job of torturing the marginal position holders, it's a big mistake to make investing decisions based on that mischaracterization.
Central bankers have moved away from a position of wanting investors to respond to their actions rather than their words. In the past, they tried to be upbeat and optimistic with the tacit understanding that policy would remain in full dovish mode. Icing for the masses and sustenance for the trickle downers.