Grant Noble Reads Mass Media for Contrarian Signals

Futures trader and author Grant Noble looks toturned very bullish on the grain markets at the
the mass news media in order to garner signalsend of April ... and the media was telling me that it
of major market bottoms or tops. Only, he lookswas time to look for a top," Noble said.
to the media with a contrarian perspective."You want to see the USA Today that has a
Noble gained his first introduction to the futurescover about coffee," Noble said, explaining the
industry when he worked as a retail commoditytype of media story he looks for. "In April 1994
broker in the late 1970s. "I saw every which waythere was a big article in Newsweek about high
people could lose money, and I thought nottechnology stocks ... so many media publications
enough people were making money. I've spentwere saying how terrible the stock market is, and
the last 15 to 16 years trying to figure it out,"you've seen a 50% rise in a two-year time."
Noble said.Noble said.
Noble currently said he is not conducting any"What I'm trying to do with the media is to pick
futures trading-"there are times when I relaxtops and bottoms ... you can do this with a couple
from trading?" But he still has plenty of currenthours a day and you don't have to watch the
market opinions. He authored the book Tradersscreen," Noble said.
Fdge, published in late 1994.Currently, Noble has turned bullish on the U.S. bond
His basic strategy is to act in a contrarian fashionmarket, which has tumbled sharply for most of
to the messages of the major news media. "If1996. "Bonds are starting a six-month rally," he
the American media is screaming it's a horriblesaid, "with a minimum objective of 117 even (in
time to buy stock-I buy stocks," Noble said. "Thethe bond futures contract) Basically, we've had a
media seem to unfailing know when there is a toplot of thrashing of the bond market. There have
or bottom-it is the best contrarian indicator," hebeen at least 10 to 15 negative stories in the past
added.few weeks,"' Noble said, explaining his rationale.
"My trading approach is that ... I think the marketsOn the U.S. equity market, Noble said, "we
are relatively easy to call over a three- tocontinue to have the Wall Street Journal talking
five-month period ... people have to find a systemabout the stock market- there have been 30 to
that will take advantage of long-term trends,"40 stories talking about how overvalued stocks
Noble said.are ... short term, this is a good buy signal, and
"The New York Times came out at the end ofover the next two to three months we should
April with a big front-page story on wheat. Thatsee stocks move higher," Noble speculated.
was the topping day in wheat ... The media had