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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (56755)2/17/2002 12:55:38 PM
From: Gersh Avery  Read Replies (1) | Respond to of 94695
 
sold my calls and bought my poots Wednesday



To: Real Man who wrote (56755)2/17/2002 4:05:56 PM
From: William H Huebl  Read Replies (1) | Respond to of 94695
 
Dunno... we could have some serious volatility this week... and what are the hours of trading tomorrow or is it a holiday - I forget.



To: Real Man who wrote (56755)2/17/2002 8:07:19 PM
From: Moominoid  Read Replies (2) | Respond to of 94695
 
Were you the guy who told me about the Hurst exponent? If so very useful clue. I looked it up in Mandelbrot's Fractional Geometry of Nature and now I can relate it to concepts I was familiar with like fractal dimension and order of integration.

It turns out that stock prices seem to be fractionally integrated (1 < d < 2). This explains a lot....

In fact the order of integration d = H*2 it seems and the fractal dimension D is given by Mandelbrot as D = 1/H.

Very cool!

It is fractional integration that generates cycle like patterns and self-similarity in stock prices and means they are to a degree predictable. Though Mandelbrot doesn't seem to want to admit to that. But I need to get his recent book on finance.

David