People can easily find some clusters or structures in random data, because people tend to incorrectly predict the amount of variability. It is similar to pareidolia as another form of erroneous pattern recognition
“You choose to see a pattern, you will see 216 everywhere. 216 steps from your home! 216 seconds for the elevator to arrive, But as soon as you discard scientific rigor, you’re no longer a mathematician, you’re a numerologist!”
(Pi, 1998)
if there is a pattern in the stock market, people will game the pattern, destroying its utility and eliminating it. the stock market is self-defeating enforced randomness, where the only constant is people who are rich tend to get richer. patterns may temporarily emerge, but the system adapts to destroy them whenever they do.
(Pi, 1998)