Does daily market coverage make any sense?

Jack Naudi, a business columnist with the St. Louis Post-Dispatch, doesn’t think so. In his column this morning, he writes: “I had an interesting discussion recently with a reader who is convinced that when the Dow hits any number with three zeroes at the end, investors should pay attention.

“But reaching round numbers isn’t all. You have to look at trading volume as well.

“I admit, I don’t understand this type of analysis. It makes my head spin. So does the Wall Street Journal, a publication I think is one of the best in the world. Every day, the Journal writes about markets, attempting to explain why they move up or down based on one or two variables.

“It’s a laughable proposition to simplify the combined movement of thousands of stocks. And for the vast majority of investors, it’s meaningless. It doesn’t do you much good today to know why stocks moved yesterday.”

To read the entire column, go here.