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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (43841)	6/28/2002 6:04:41 PM
From: UnBelievable	Read Replies (3) \| Respond to of 209892

Not Humans - Computers Capable of computing the price elasticity of every stock on a real time basis, and then using that information to calculate the cost of increasing or decreasing the price of any stock, future, or derivative, with a comprehensive set of tables indicating the weighting of each stock in each index, and using linear programming algorithms capable of calculating the most cost effective way to move the indices at any point in time, as well as the consequences of those movements for their positions, and with programs based on game theory they are capable of calculating what price movements are going to elicit the most profitable actions for the firm, from market participants, in the context of a real time inventory of all of the security and derivative positions which the firms is holding, and then executing trades based on those determinations. These capabilities enable it to project the extent to which market participants will open short positions in the context of specific price movements as well as the extent to which these participants will be cover those positions based on subsequent price changes. It costs money to ramp the futures or create a squeeze, or to support the price of a particular stock. They need to be sure that the expenditures are justified and optimized. They would no more let a person decide when and to what extent to ramp the futures or create a short squeeze than a drug company would have a chemist with a beaker and a balance produce its products. That's the way you would do it, and with some input you could probably design a system that would do it. Do you really doubt that Merrill, Goldman, or Morgan could have and did? But what I want to know is how they knew I had gone long for the end of quarter close and therefore didn't ramp it. <gg>