Woody Dorsey just sent out an essay on some of the patterns he has developed over his 40 years of trading. It is very interesting and will enlighten you on some of the terminology used here. The entire piece is in the link below.
What is a Black Hole?
A Black Hole is a defined time period when extreme market events may take place in a very short period of time. I invented this term based on 40 years of studying markets and psychology. It is an advance in the field of Behavioral Economics. It is beyond the scope of current Rational Market theory. In Efficient Markets it should never happen and there should be no way to anticipate such events…..but. Human Beings, Teenagers, Investors and Markets do freak out once in a while. We generally don’t like to talk about it. Human Nature is Market Nature and it isn’t always pretty. Black Holes are specific negative stock market patterns.
Keynes and the General Theory of Market Prana
The most interesting ideas may never be published. You can’t always google the real story. Maynard Keynes, the eponymous British economist, is not so well known for his suggestion that “Animal Spirits” lay at the core of all economic behavior. Why do Humans and Markets behave the way they do? It is the Energy. Follow the Money may really mean follow the Energy. The original term for Energy is Prana. It is the Market Energy or the Market Prana which influences Market buying and selling. I know you don’t know what I am talking about. It is not Rational but markets are not really Rational either. Certain Stock Market setups produce a specific Prana which induces a Black Hole. Okay this may really seem like a lot of inside baseball for most folks who assumed they were well aware of the rules of the game but that is where my research has taken me. The Psyche, the Animal Spirits, the Market Prana are the real prime movers of Markets. I invented the term Black Hole but the Energy already existed.
RFead the entire piece by clicking on the link below (Black Hole)
What is a Black Hole?
A Black Hole is a defined time period when extreme market events may take place in a very short period of time. I invented this term based on 40 years of studying markets and psychology. It is an advance in the field of Behavioral Economics. It is beyond the scope of current Rational Market theory. In Efficient Markets it should never happen and there should be no way to anticipate such events…..but. Human Beings, Teenagers, Investors and Markets do freak out once in a while. We generally don’t like to talk about it. Human Nature is Market Nature and it isn’t always pretty. Black Holes are specific negative stock market patterns.
Keynes and the General Theory of Market Prana
The most interesting ideas may never be published. You can’t always google the real story. Maynard Keynes, the eponymous British economist, is not so well known for his suggestion that “Animal Spirits” lay at the core of all economic behavior. Why do Humans and Markets behave the way they do? It is the Energy. Follow the Money may really mean follow the Energy. The original term for Energy is Prana. It is the Market Energy or the Market Prana which influences Market buying and selling. I know you don’t know what I am talking about. It is not Rational but markets are not really Rational either. Certain Stock Market setups produce a specific Prana which induces a Black Hole. Okay this may really seem like a lot of inside baseball for most folks who assumed they were well aware of the rules of the game but that is where my research has taken me. The Psyche, the Animal Spirits, the Market Prana are the real prime movers of Markets. I invented the term Black Hole but the Energy already existed.
RFead the entire piece by clicking on the link below (Black Hole)
