This month, the Philippines marked the 38th global rate easing since last December. Clearly, central banks are on the right course, but it's a long road ahead. So let's filter out all the economic and company information and analyze events from a psychological viewpoint. Reading the market requires you to realize the most important aspect of tape-reading. The market is a discounting machine, and principles of accumulation and distribution allow astute traders to participate profitably because of it.
Stocks fall on good news, and rise on bad news.
When logic says one thing should happen, in reality, the opposite occurs. Aristotle has no place in market reading. Euphoria has turned into capitulation. Many felt as if Wednesday was the capitulation we needed on the major gap down. I beg to differ.