So for the past 14 years, we have been researching financial markets and providing traders with advice based on stock market internals and sentiment.  We believe that news doesn’t move the market, computers do.  And Computers don’t read the news – they read data.  So we analyze the data of the market looking for driving trends that correlate to price action.  It’s not rocket science (ok, it is pretty complex) – but after speaking at the world money show we believe our research is valid and respectable…

So what dies this have to do with Seeking Alpha?  If you’re new to trading, you’ll find that there are not thousands, but millions of financial sites.  The models are very similar, provide content and rang in google and get people to visit your site.  There are companies like our looking to grow their reputation and willing to share their content to sites like Seeking Alpha .

So we signed up online to provide content – and gave them one of our articles to review.  This was their response:

Thank you for your recent submission to Seeking Alpha. Your article “Stop Market Top Or Not?” has been declined by our editorial team. Our editors had the following feedback:

Thanks for your submission. Seeking Alpha doesn’t publish articles based primarily on technical analysis – we are looking for fundamental analysis geared towards long-term investors.

Ok, one thing to note is that we DON’T USE TECHNCIAL ANALYSIS.   Anyone can read a chart.  The chart is common knowledge to any trader, making it worthless.  The market is random and charts reflect that random movement and without going into the details of the brain chemistry – but it’s why traders THINK they can perceive patterns in the randomness…

That being said, we do produce graphs – those graphs show us what’s happening behind the price action – they show us how optimistic or pessimistic stock market traders are.  These charts are not TECHNICAL ANALYSIS – they’re research on market sentiment. 

Let’s look at what the term alpha means: The abnormal rate of return on a security or portfolio in excess of what would be predicted by an equilibrium model like the capital asset pricing model (CAPM). 

Basically, alpha is the portfolio return above normal returns.  If you are Seeking Alpha, wouldn’t you want to advise people on returns that actually do provide Alpha?!?

Their second statement is interesting – “we are looking for fundamental analysis geared towards long-term investors”

Really?  You trust fundamental analysis from companies that are following gaap – GENERALLY accepted accounting principles.  Fundamental analysis is a fallacy.  It’s not what moves the market.   If the same earnings that look great when the market is moving higher, look great when the market is moving lower, then why is the stock moving lower?

Sentiment.  And I won’t say Technicals here because Technicals are the effect – sentiment is the cause.  Technicals are the proof that the sentiment is negative (even though the fundamentals are good).  So in this rock scissor paper relationship that governs the market, sentiment trumps them all…

Seeking Alpha Review

So why would Seeking Alpha want to focus on fundamental analysis?  Because it provides good content to fuel the content ranking machine that Google is…  Better ranking on Google means more people visit Seeking Alpha.  The more people that visit Seeking Alpha, the more they can charge for marketing and advertising and the more they can sell from traffic on their site. 

That may just be my opinion, but think about it.  Accordingly, my review of Seeking Alpha is that it’s not worth your time.  Their advice is selected by a bias, making it not reflective of the aggregate thinking that’s available on financial markets.  I bet if I wrote an article on the economy, they’d love it.  But can you really draw a meaningful timing and trading conclusion from an economic analysis?  Absolutely not!  You can take all the economists in the world and line them up head to toe – and while they may wrap around the world a couple times, they’ll still never reach a conclusion…

But I digress…

If you want to review our research, feel free to visit www.stockbarometer.com – you can try any of our newsletters for $1 and you’ll get access to all our research as a bonus…