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Today’s WSJ

Posted By on February 20, 2009

Today’s Wall Street Journal’s headline: “Market Hits New Crisis Low.”

“Money managers and analysts,” WSJ reports, “are warning clients that they aren’t yet seeing the signals they would expect to see at a true market bottom… The classic sign that many analysts are looking for is a period of frantic selling, followed by a sudden onset of heavy buying.”  (Paper edition.)

I’m not sure quite what to make of that.  It bugs me for a couple reasons.  One is that it reinforces the mistaken idea that there can be more selling than buying, or more buying than selling, in the market, at any given point in time.  In fact, there’s always exactly the same amount.  I don’t know if it’s just shorthand, or sloppiness, but either way, I think they’re doing a disservice to people who read the WSJ.

It also reinforces the timing-the-markets fallacy that papers like the WSJ  and people like Cramer perpetuate.

Think about it, though.  What would happen if tomorrow’s market results were posted today?


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