Nearly all momentum monkeys who bought today got buried in coconuts. VWAP 49.86 tells a sorry tale - but they will come again for the next one and the next and the next....
The real problem is with the investing "public" or inexperienced on line traders: or the unenlightened mass that call themselves 'investors' because they can align a mouse pointer over the word "buy". It is these new investors that remain unacquainted with sound investment logic, that have raised the risk premiums on stocks like PMH, and that have changed the investor's focus from corporate fundamentals to that of macro speculations.
It is a speculation on a speculation, incomplete information extracted from incomplete information. As anyone who has ever played the kid's game of telephone will attest, the message that results soon has little resemblance to its source - like chinese whispers.
Unfortunately, the average herd investor does not seem to recognize that they are nothing more than a monkey.
daytrader cemetry
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