And Another Thing

On the Sterling NBA sale.

Back in the days before the quants ruined everything, great traders had a "feel" for the market. Robert Prechter, of Elliot Wave fame, was one such trader. Prechter used to publish, now and then, a list of anecdotal observations that went along with market trends. A psychology major and drummer, these "feels" could come from music, art and entertainment.

The mood and message of popular songs is an easy one. Pharrell's Happy being pounded into your brain. Another is NBA popularity (often as attendance) and the equity market. Prechter showed a long trend in the late 70's early 80's of Dow stagnation and NBA scandal and fan indifference. This turned around with Dr. J and Magic and exploded to the upside with Jordan.  Sterling's shaming into selling the Clippers to Ballmer shows an interesting inflection point. Amid numerous other athlete scandals, Ballmer agrees to pay 2B for the club. For now, the trend is with him but these moods, and the prices associated with them, can change quickly.

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