3 ms·

Nope. Every three year period contains a low-within-that-period but that's not what "three-year low" means. Consider, e.g., an asset whose price is just going

by gjm11 12y ago

Nope. Every three year period contains a low-within-that-period but that's not what "three-year low" means. Consider, e.g., an asset whose price is just going steadily upwards. Every 3-year period has a low point -- the start of the period -- but there is no point at which you can say "The price of this asset is now at a 3-year low".

brudgers 12y ago
By that reasoning, IBM is not at a 3 year low since it is up from earlier today. The concept remains meaningless. That's why it is used by those speaking to dumb money.
- throwaway5752 12y ago
  Can I ask if you consider yourself smart money, then? Because in almost 15 years of investing, fundamental research, and technical analysis [edit: and associated community participation, consumption of research products, and reading investment literature and publications] I have not seen anyone take issue with calling a 3-year low on a stock on the basis of an intraday low. It's a 3 year low. I didn't say that was particularly important, but it's true by any reasonable definition of the term (which is a common one). It might be important on the basis of the volume, as it crossed a technical level that it's held for quite a while and may be forming a downtrend, which is frequently interpreted as a sign of institutional selling. edit: FYI, IBM hasn't traded below 170 since Oct 4, 2011. It hasn't closed below 170 since Sep 23, 2011.
  - brudgers 12y ago
    Smart money? Me? No fucking way. The few times in my life I've made money from an "I've got a deal for you phone call" the person on the other end wasn't making money from a cut of my check. Instead, I was making the deal bigger. Stock market literature is a respectable pony system. The Dow goes up because they drop losers and add winners. The index funds were that were holding AIG didn't get Kraft Foods shares and their investors lost money. I feel I'm just smart enough to recognize that intraday is dead money for the quants in HFT.
    - throwaway5752 12y ago
      Look, we actually agree on most things. But smart money also knows there's a durable advantage in patience, time frame, and liquidity. Something that the individual can general have an advantage against funds in (given substantial knowledge in fundamental valuation techniques and market dynamics - no small order). Describing it as a 3 year low is completely accurate. Saying there's a lot of dumb money in retail is, too. I respect your not playing a game that is set up against you.

by gjm11 12y ago

brudgers 12y ago

By that reasoning, IBM is not at a 3 year low since it is up from earlier today. The concept remains meaningless. That's why it is used by those speaking to dumb money.

throwaway5752 12y ago
Can I ask if you consider yourself smart money, then? Because in almost 15 years of investing, fundamental research, and technical analysis [edit: and associated community participation, consumption of research products, and reading investment literature and publications] I have not seen anyone take issue with calling a 3-year low on a stock on the basis of an intraday low. It's a 3 year low. I didn't say that was particularly important, but it's true by any reasonable definition of the term (which is a common one). It might be important on the basis of the volume, as it crossed a technical level that it's held for quite a while and may be forming a downtrend, which is frequently interpreted as a sign of institutional selling. edit: FYI, IBM hasn't traded below 170 since Oct 4, 2011. It hasn't closed below 170 since Sep 23, 2011.
- brudgers 12y ago
  Smart money? Me? No fucking way. The few times in my life I've made money from an "I've got a deal for you phone call" the person on the other end wasn't making money from a cut of my check. Instead, I was making the deal bigger. Stock market literature is a respectable pony system. The Dow goes up because they drop losers and add winners. The index funds were that were holding AIG didn't get Kraft Foods shares and their investors lost money. I feel I'm just smart enough to recognize that intraday is dead money for the quants in HFT.
  - throwaway5752 12y ago
    Look, we actually agree on most things. But smart money also knows there's a durable advantage in patience, time frame, and liquidity. Something that the individual can general have an advantage against funds in (given substantial knowledge in fundamental valuation techniques and market dynamics - no small order). Describing it as a 3 year low is completely accurate. Saying there's a lot of dumb money in retail is, too. I respect your not playing a game that is set up against you.