News Follows Price

“News Follows Price”

“Prices lead fundamentals.”

“Prices lead, fundamentals follow.”

It can be a difficult concept to understand.

It took me a while.

It requires an understanding of technical analysis.

It took an observation of thousands, then millions of charts.

I believe it now.

“Prices lead, fundamentals follow.”

I didn’t make this up.

Paul Tudor Jones II, the founder of Tudor Investment Corporation, said in Jack D. Schwager’s Market Wizards: Interviews with Top Traders (1989):“I always believe that prices move first and fundamentals come second.”Jones believes that the price looks to the future and anticipates the fundamentals soon to follow.

On May 11, I became bullish on wheat anticipating a move higher based on the Kansas City and Chicago charts.

On May 14, India announced a ban on exports.

Kansas City closed up 8% in the following two days and is now up 14% with today’s move.

I am fascinated with this concept.

I think you will be too.