Tuesday 6 December 2022

vomiting camel (10. 366)

Planet Money’s partner podcast The Indicator introduces us to a practise called stock price charting or technical analysis that economic academics have long debunked as a poor predictor of market trends and no heuristic for basing future trades though pattern recognition yet for some traders and for many media outlets that cover the markets, this study with its language of line graphs classed as candlesticks, heads and shoulders, flags, pennants and cup and handle patterns is proving enduring and a guide of first resort. Skeptics dismiss this method as ineffective at best and verging on an obsession for a few adherents. Sort of like Doge Coin be created as a joke which gained purchase of its own, one detractor began to see the titular pattern in stock performance and offered this pareidolia as a critique of this sort of divination but it too took off as a telling up-and-down spike to be on the lookout for and be primed to buy—or sell—or hold. What do you think about reading the economic tea-leaves? Is it no better than one’s astrological chart or is there something to this superstition for a system buoyed up by common belief?