The interesting thing about communication is not what is said, but what the saying can reveal about the speaker. Look also at the context or the posture (real or figurative) of the speaker. Look to his agenda. Communication is used to influence more than merely to transmit information. This is not to say it must be totally false, but influence requires the target be placed a little further than the bulls eye. It’s not what they say, but what saying says about their agenda: posturing, plain and simple.

When a man professes and reassures about his honestly, what does that tell you? Will you trust a man who says, "In all honestly" or "Let me put my cards on the table" or, "Here is the bottom line"? When the news reports dismal news, it’s a reflection of a meme, not information about an objective reality. It’s shadows on the cave. Look to the man on the street. What does his posture, grooming, expression, physique, actions, dress, demeanor, words, what he is carrying, his interactions with those around tell about that person, what he is thinking and going through, his background, his attitude?

There can be collaborative communication that is different from communication to influence. Women talking might be an example. Watch two women when they communicate. It doesn't matter what they are talking about, it is a cadence and the establishment of rapport and bonding that is occurring.

One of the beauties of the market is that price execution is not communication to influence, it is the end product, the reaction. It is the judgment and execution, not the argument. Despite underlying agendas in the market, exchanges, market makers, specialists, flippers, traders, insiders, management is maneuvering to influence. The tape is the ultimate revelation of truth in our world. There are not many places in life where things are so certain and known so quickly.

The adversarial market process is designed to bring out the truth. It is a brutal and unforgiving process, but the truth will be known as closely as possible. In the market the truth again is about the participants rather than some objective fact. There is no objective idea of value, rather it is individuals' utility of owning the companies for the next period of time versus other possible investments. Look to the rapid declines with low order depth, or the steady rise to new highs on high order volume. Look to the action of the tape, the individual stocks, the market's moves. What does that tell you about the market participants, what they are feeling? Know from prior experience and study ahead of time what they will do next typically. Know yourself as well.





Speak your mind


Resources & Links