I have dedicated myself to a year-long study of Benjamin Graham's book Security Analysis.  Currently, I'm studying:

Part 1: Survey and Approach
Chapter 3: The Behavior of the Security Markets

(page 23) The security analyst operates in the area of marketable securities, and he is deeply concerned with their price behavior.  The price to be paid or received for a security is an integral part of any complete analysis.

(page 23) We do not believe that short-run price movements -- the day-to-day or month-to-month variations -- are a valid or profitable concern of the security analyst.

(page 23-24) High-grade bonds are by definition, exempt from present or future doubt as to prompt payment of interest or principal.  Their price should be controlled mainly by the going rate of interest for their maturity bracket.  Therefore, the main point of anticipation is the future course of interest rates.

(page 25) Call provisions are basically adverse arrangements, of the "heads I win, tails you lose" description.  Their over-all result is that when interest rates fall the bond investor loses income and when they rise he loses principal value.

(page 25) High-grade preferred stocks...by definition, are subject to no doubts -- present or future -- as to regular payment of the stipulated dividend.  If such doubt arise, the market price may be seriously affected even though the dividend is actually uninterrupted.

(page 26) Importance of the price factor...it is important, therefore, for the security analyst to have independent standards of value which resist the pervasive optimism and pessimism of alternating market swings.

(page 28) ...the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities.  Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.

(page 30) Undervalued situations when the market appears high...In a word, beware of "bargains" when most stocks seem very high.

My Thoughts: The above reminds me of a quote from Warren Buffett, "Be fearful when others are greedy and greedy when others are fearful."

(page 30) Summary.  The security analyst should be concerned with those fluctuations in security prices which tend to create opportunities to buy at less than indicated value and to sell at more than such value.  He should not devote his attention to short-term market movements, as such, nor to precise timing of changes in the market's direction, for either major or minor swings.
.