[karmakaze]

> drawing pictures in clouds.

Well phrased and it's how the stock market works, not only by technical analysts but everyone else playing: make a story in your head, place your bets, majority rules.

Some even believe that's how reality works in general. Sometimes belief or need could be a factor[0].

[0] https://www.guinnessworldrecords.com/news/2012/9/norwegian-f...

[WalterBright]

On a more long term basis, the stock market reflects the business reality. But in the short term, it's chaos.

[karmakaze]

The former is a belief. It always reflects the imagined realities of those investing--we assume that business reality catches up with them, and it mostly does but not always within a predictable time frame.

[WalterBright]

> The former is a belief

It's based on the Law of Supply & Demand, which is always in play.

[gloosx]

Always in play for goods and services, but this is a crypto currency – it's supply is mathematically limited, and it's value is fully market-dependent – determined only by players on the market.

[wqaatwt]

A huge short term influx of free capital can shape that longterm business reality. Of course both in positive and negative ways