Short selling is un-American. It is done by rogues, thieves, and especially
pessimists, who are, of course, the worst of the lot. It is a terrible, terrible
thing and must be stopped in our lifetime. We should halt it, restrict it, or
at the very least revile those who make it their vocation.
The above sentiments are sadly not imaginary or rare. Rather, they
genuinely reflect much of the investing public’s view of short selling.
The English poet, John Keats, explored this relationship when he asked: “Do we retreat from
the reality of the outer world into ourselves at times, or do we retreat from the pressures of
the outside world into the reality of our inner selves?” (Philipp, 2001a). In taking this
question further, the doctor-poet, Dannie Abse, musing on it in 1993, noted that:
“imaginative daydreaming is an escape from the precipitous pessimism of living or dealing
with problems and the sphere of sorrows, and it is used to restore balance” (op.cit.).
Candlesticks are one of the most powerful technical analysis tools
in the trader's toolkit. While candlestick charts dates back to
Japan in the 1700's, this form of charting did not become popular
in the western world until the early 1990's. Since that time, they
have become the default mode of charting for serious technical
analysts replacing the open-high-low-close bar chart.
There has been a great deal of cogent information published on
candlestick charting both in book form and on the worldwide web.
Many of the works, however, are encyclopedic in nature.
The hill people and the Mexicans arrived on the same day. It was a Wednesday, early in September 1952. The Cardinals were five games behind the Dodgers with three weeks to go, and the season looked hopeless. The cotton, however, was waist-high to my father, over my head, and he and my grandfather could be heard before supper whispering words that were seldom heard. It could be a “good crop.” They were farmers, hardworking men who embraced pessimism only when discussing the weather and the crops....
Pessimism is ubiquitous throughout the Western world today.
Whether today’s anxiety stems from the inability of politicians in
Washington, DC, to fund the U.S. welfare state, or from the intractable
euro crisis in Europe, there is a rising sense of gloom and helplessness
on both sides of the Atlantic. I am an optimist, and this book is offered
as an antidote to this contagion of gloom. It proposes solutions to
many seemingly insoluble problems, for example, the prospect of a
Lost Decade, and ballooning U.S. health-care spending.
Über Schopenhauer: Arthur Schopenhauer (February 22, 1788–September 21, 1860) was a German philosopher known for his atheistic pessimism and philosophical clarity. At age 25, he published his doctoral dissertation, On the Fourfold Root of the Principle of Sufficient Reason, which examined the fundamental question of whether reason alone can unlock answers about the world. Schopenhauer's most influential work, The World as Will and Representation, emphasized the role of man's basic motivation, which Schopenhauer called will.
To my knowledge, this paper is the first to find evidence that news media
content can predict movements in broad indicators of stock market activity.
Using principal components analysis, I construct a simple measure of media
pessimismfromthe content of theWSJ column. I then estimate the intertempo-
ral links between this measure of media pessimism and the stock market using
basic vector autoregressions (VARs). First and foremost, I find that high lev-
els of media pessimism robustly predict downward pressure on market prices,
followed by a reversion to fundamentals.
I quantitatively measure the interactions between the media and the stock market
using daily content from a popularWall Street Journal column. I find that high media
pessimism predicts downward pressure on market prices followed by a reversion to
fundamentals, and unusually high or low pessimism predicts high market trading