Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (16544)	6/17/2004 8:08:44 PM
From: Tom Swift	Respond to of 207847

I have always assumed that program trading is derivative in nature. I don't know what the derivatives are though - there are probably many different ways to leverage/profit in established positions by moving a basket of stocks intraday. The perfect world for program trading is a sine wave which is not much different from what we are doing so far this year.

To: Chip McVickar who wrote (16544)	6/18/2004 7:02:54 PM
From: bearshark	Respond to of 207847

Chip: Much of what we do to analyze markets, has at its base, crowd psychology. This includes charts, Dow theory, Elliot Wave, etc. The more people in the crowd, the better. In smaller groups you could be affected by a ringer or an outlier. You will see this expressed a bit differently in various places. Its funny but you even see this same concept in one of Justice Scalia's opinions. It made me smile when I saw it but I could never find it again. >>>>So it might be accounting for the locked spreads without direction and the quick reversals that we're seeing.<<< I believe so. I think it was in the beginning of June that the markets nearly stood still. Someone posted an e-mail from someone on the Big Kahuna thread that seems to discuss this.