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What a Rooster and the Stock Market Have in Common
Both operate on internal clocks

By Bob Stokes
Fri, 22 Mar 2013 17:30:00 ET
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In Elliott Wave Principle: Key to Market Behavior, Frost and Prechter wrote (p. 21): 

Sometimes the market appears to reflect outside conditions and events, but at other times it is entirely detached from what most people assume are causal conditions. The reason is that the market has a law of its own. It is not propelled by the external causality to which one becomes accustomed in the everyday experiences of life.
 
Few investors know that financial markets are internally regulated, and that price trends unfold independently of external events.
 
Indeed, most market observers think external events drive the markets.
 
The financial headlines regularly link the day's market action to some external event. One day it might be earnings. The next day the news will link the market's direction to comments from the Federal Reserve chairman or developments in Cyprus. Whatever the news, the financial press generally connects the dots to stock market prices.
 
So the question is: If external events do not drive stock prices...
 
... What does?
 
R.N. Elliott discovered the Wave Principle in the 1930's. He wrote: "The forces that cause market trends have their origin in nature and human behavior."
 -- R.N. Elliott's Masterworks, p. 273.
 
The stock market's progress is as natural as the growth of a tree. The tree will grow according to its natural form regardless of the weather. Likewise, the market is also endogenously regulated.
 
And Japanese scientists have just discovered that another occurrence in nature is also internally regulated, and not triggered by the external world. Here's an excerpt from a March 19, National Geographic article.
 
How a Rooster Knows to Crow at Dawn
The animals know when it's daybreak even in a darkened room, study says.
 
Back before alarm clocks jolted us awake to greet the morning with bleary-eyed confusion, roosters performed that daily duty. Now, a new study shows that roosters don't need the light of a new day to know when it's dawn—rather, their internal clocks alert them to the time.
 
Likewise, the stock market has its own internal clock.
 

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