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Friday, September 14th, 2012
breakout

Charts are breaking out all over.  So, which is the one above?

Like other charts, there is much debate about the influence upon the traded vehicle because of the monetary stimulus of the Federal Reserve.

Like other charts, there are those who immediately respond to the technicals of it, seeing in the pattern the story of what it will do.  There are also those who will primarily see a reflection of the wisdom of their personal opinions — and those that will intensify their emotional opposition to the development at hand.  After all, there is still time for them to be right, just as there is still time for those feeling smug to be wrong.

We see lots of things in a chart like this.  When it cuts to the core of our beliefs, it gets personal in a hurry and we sometimes can’t see straight.

This happens to be the Intrade contract for Obama to win in November.  But it is representative of how we might view a chart’s prospects differently depending on who we are and the baggage that we lug.  (Chart:  Bloomberg terminal.  Data from Intrade.)