The more things change, the more they remain the same. This
money manager compares today’s economic situation with
the 1920s and finds some interesting parallels.
As computers continue to dictate
many of the trading decisions of
the 1990s in both the stock and
futures markets, fundamental
economic data appears to have
less and less relevance in the
daily heat of market trading.
However, when you step back
and take a look at the big picture,
it makes more sense to examine
some of the economic factors that contribute to a market
psychology, for, in spite of technical analysis, there is a
psychology to the markets that ultimately determines price
I have operated in the leveraged medium of futures for
nearly two decades, so for me, success is more dependent on
the timing of a particular trade rather than on any particular assumptions I may have from evaluating the fundamental
supply and demand factors. Consequently, because I base my
trading decisions on mathematical concepts, I could be placed
in the technical camp of trading and market analysis.