Fundamental Folly?

Why was there less volumes in the market last night even when some factors like CPI was higher than forecasted? Is it because of the figure was at acceptable levels which will drive the nail into the fed's decision later on next week or the market are just not interested with the numbers given just a few minutes? Are the fed stuck between inflation and the housing? My point of view is that The US Economy is exactly going to where it want to heads and Bernanke has made a very accurate prediction on the slowing down of the economy. Or are they heading to a recession as Greenspan claims?


Where is the dollar heading? Are rates going to be cut by may? Anyone cares to comment?

I just feel that fundamental data is now primarily a lagging factor in market movement.
If the fundamental news is not wildly out of kilter with the anticipated figures of the core mainstream, the market (now, increasingly influenced by a rapidly growing number of retail traders like ourselves, and, I believe, seen as easy pickings by the majority of seasoned professional traders) will not react as rapidly as in the past.

This does not mean that the market will not move as anticipated, simply that it will respond in a timely manner, usually after wiping out the trades of amateur traders such as you and me.

Personally (fingers burnt too often), I now never trade the news.

JMO