"trading" Posts
Market Internals 2011-08-23
By LawrenceBefore market open at the moment. Tick16 Short Term overbought. Tick16 Long Term bullish. 3-Day Advance Issues oversold. That continues pointing to a selloff that will define an important low. Looking for Tick16 Short Term to correct itself in 2 possible ways – one is ES going sideway with big swings and lots of negative […]
Market Internals 2011-08-18
By LawrenceIt is 1 am Eastern Time and the overnight market is down at the moment. Japan Nikkei is down more than 1% But as of close of yesterday Aug 17, the Tick16 Long Term is no longer bearish. And the 3-Day Advance Issues has completed its correction and bounced off the midpoint. That means a […]
Market Internals 2011-08-16
By LawrenceAs indicated yesterday before market close that a pullback is due and that it is likely in the afterhours session, here it is – a selloff in the night at 20 S&P points range. This pullback may not be just a pullback at all. It is confirmed by breadth yesterday that it is overbought in […]
Quantum Mechanics and HFT
By Lawrence
Quantum Mechanics sounds like it has nothing to do with High-Frequency Trading (HFT) except the fact that they both have sound bites coming from an alien planet. However, if you examine the concept of HFT closely, you would be surprise that some principles in Quantum Mechanics do apply on HFT. (Thanks to Kenneth reminding me […]
Usual Strategies Used to Pop the Stock Market
By Lawrence
When the stock market is selling off in panic mode, the authorities would step in. It is not something new. It is not personal. Things are done in the name of calming or stabalizing the markets. Although these measures may not be effective at all, they will still be executed because it is just how […]
S&P Credit Rating Cut on United States Initial Reactions
By LawrenceInitial reactions to the rating cut is exactly as predicted – target evaluation changes across the stock market indices, bonds, etc. by famous brokerage firms. The all too normal reactions from the Fed and G8, G20 officials also happened. Federal Reserve has pre-announced its emergency meeting on Tuesday which can happen much earlier if we […]
Implications and Direct Impacts on S&P Rating Cut on United States
By LawrenceS&P officially cut the rating of United States from AAA to AA+ with negative outlook. You can read reports on that from the following sites, ZeroHedge Reuters As a trader I do not really care what the hell it will do to the economy around the world in the next 6 months nor should you. […]
If you think silver margin hikes was bad, see this.
By LawrenceIrish bond margin requirement is now 65%, increased from 55%. Notice is given 1 day in advance only. http://www.lchclearnet.com/risk_management/ltd/margin_rate_circulars/repoclear/2011-05-25.asp Saw this from zerohedge here.
Some Thoughts on “Nassim Taleb on Living with Black Swans”
By LawrenceFirst it is a good read – Nassim Taleb on Living with Black Swans Several interesting parallels on Nassim’s take on the current situation in the financial system to individual traders or trading models – Traders who never experienced significant losses in the beginning of their trading career are likely the ones who blow up […]
Market Internals 2011-08-25
The expected bounce happened. And based on 3-day advance issues and Tick16 Short Term the rally will be over quickly if not already. The divergence top on the 3-day advance issues together with the overbought conditions on both breadth readings point to a sharp selloff in the making. Can start as early as today. The […]