Qualcomm Moderated Thread - please read rules before posting Message Board

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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 173.96

+1.4%

Nov 11 3:59 PM EST

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To: sag who wrote (93495)	7/22/2010 10:16:14 PM
From: Maurice Winn	2 Recommendations of 196610

That quote from D E Shaw is so last-century. The Flash Crash was a matter of dueling computers trying to outguess the other models and play chicken with each other. The loser models get wiped by the champs which use the episodes to fine tune their models to do better next time. They challenge margin levels and generally explore liquidity, looking for weaknesses which can cause cascading sudden big drops and sudden gains too. It's no skin off my nose if they want to take QCOM to $20 for 1/100th of a second then back up again to $50. I have my idea of value and will sit there with my $20 bid and if they go down there, then thank you Mr Fast Trading Computer. Except that now I can't do that because they'll cancel my successful share purchase. Qualcomm hopefully is standing in the market with $10 billion in cash at $25 in case such a "Flash Crash" comes knocking on the door. By trying to avoid Flash Crashes, the market authorities are making things worse, so that crashes might go even further because built into the models will be "trade canceled" risk factors. Price discovery is not just a matter of finding one person who will trade at a particular price. Studying the depth of the market is a more realistic price discovery process. That's what Flash Crashes do. Run the tide out and see who is wearing bathing suits. I'll be there, lurking underwater with a scuba suit and spear gun, waiting for them. Come on in Mr D E Shaw and Supersonic Traders, the water's fine. The Folks don't have a problem: <"The Folks" haven't a chance.> Just buy when the future profits look good at a particular price. Sell when they don't. Ignore Flashy Crashy Garbage In = Garbage Out Supersonic Fast Trading Computers with fibre to the trading floor. Mqurice

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