Thursday, January 21, 2010

Bloomberg journalists...

A headline article I saw on bloomberg this afternoon is pretty bad, check this out:

"The two-day plunge in equities pushed the S&P 500 back below its 50 percent recovery from the bear-market bottom last year. The benchmark index for U.S. stocks on Dec. 24 recovered half its losses from the 17-month decline that ended in March 2009, a so-called Fibonacci retracement that technical analysts said signaled more gains to come. "

Huh? Umm, false and false.

Note to Nikolaj Gammeltoft, the S&P is absolutely no where near the 50% retracement level, its simple math for anyone who bothers to check. The low was 666, the recent high a few days ago was 1150. Subtract, 1150 - 666 = 484. Now here comes the 50% part... 0.50 * 484 = 242. Now add, 666 + 242 = 908 and vwualah! The level referenced in this article is actually about 20% lower, lol. Second of all, a 50% retracement is not a Fibonacci retracement... its a 50% retracement. A Fibonacci retracement is either 61.8% or 38.2%. We do not have a fancy name for the 50%, but hey, at least you spelled his name correctly.

Edit: Dumb post, see follow up.

1 comment:

Anonymous said...

90% of journalists are absolute jocks who have no technical knowledge.