Updated Graph and some thoughts, page-4

One of the fallacies in today's markets, is the old idea that "The Market Is Always Right".

In today's climate of bot trading, HFT, blatant manipulation, hedge funds and traders using shares purely as a means of buying and selling to make a profit, with absolutely NO longer term intent on actually INVESTING in companies, I think that old idea is well and truly outdated.

I also think that all the basic principles of technical analysis have been well and truly screwed by all these current manoeuverings. TA was originally based on using the charts to assess market sentiment, momentum, etc based on price and volume (all other indicators come back to those two eventually). But with algorithmic trading and all the other shenanigans, there is NO sentiment, and even momentum can turn on a 5-cent piece. You only have to see the pump-and-dumps, the newsletter recommendations to buy while the proprietors sell and vice versa (yes, I know Rivkin was doing this years ago).

As someone who started as a pure TA person, I have become more and more disillusioned with TA, and no longer believe that the market is always right. It isn't - the market is highly controlled by the big funds, banks, institutions, and big traders. No more, no less. I've been watching countless charts as they unfold over the last 3-4 years, and almost ALL of the previously reliable indicators have been worse than useless. Even in hindsight.

So posting a chart showing the fall in share price really means nothing. Jan Johnson's chart of rising production and falling costs is much more significant - provided LYC can survive the mauling by the markets.

Rant over...!