Hi Rookie,
Murphy is a TA and intermarket specialist, and a good one at that.
My understanding of fundamentals is based on the business model, my sentiment of mentioning the ‘voice in the wilderness’ was to highlight the fact that a couple of weeks ago all charts ,TA and commentators were singing from the same sheet - saying that the USD was unstoppable - I mentioned heading to the moon, I’ll post that specific chart next, complete with the moon attached.
I’m not sure what is meant by economic indicators, what I could see was that US imports were falling, exports were falling, pmi was down (very important), consumer confidence down, there was an increased likelihood that retail spending would fall (as it did), there was increased downward pressure on prices - all in all there was one thing that suggested better times ahead - the NFP
So whether the economics were reporting to ‘be a voice in the wilderness’ amidst all the hype from charts and indicators etc, or maybe just because the USD was ‘overbought’ - I don’t know, all that I do know is that the retail sales, I felt, would be almost like the kid shouting ‘look the emperor has no clothes’.
The investor/ trader relationship is one that has fascinated me for many years. There is a guy called Guppy who created a system for following the investors - something to do with lots of ma’s I think.
For me investors are not like the comms, a little more like the funds but way more risk intolerant. I doubt they would wish to attempt reverse the market - too much risk, but they very much look to the long term future, one of their important yardsticks is “growth potential”. I forget who used the term ‘intelligent foresight’ but a successful investor requires that particular attribute.
So if I am an investor, I must weight up where the most growth potential lies, anything that is likely to give me that growth, whether better interest rates, whether an economy that is likely to grow and thus offer good growth in it’s companies or whatever.
If I decide that the EZ is likely to grow, helped with QE, then I will not care in the least about QE ‘diluting’ the Euro, instead I will want to buy into EZ companies, to do so I will need a few Euros.
It’s an interesting subject.