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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?


To: BDAZZ who wrote (96705)11/22/2010 8:58:52 AM
From: Maurice Winn2 Recommendations  Read Replies (1) | Respond to of 196546
 
It is certain that stock markets follow patterns, like all natural phenomena. The problem is that the patterns are not just human response patterns but human expectation patterns and now mathematician response patterns resulting from interacting competing mathematicians.

One pattern seen was the Flash Crash as the computers dueled with each other to test reactions and predictions. They found a reaction - governments and authorities will cancel trades. Hmmm... more profit opportunity there and another variable to throw in the equations.

The Flash Crash response by authorities will increase volatility [the opposite of their intentions] because people and computers won't buy at the bottom because their trade will be canceled. I was going to enter "buy"orders to lie in wait for another Flash Crash. But not now because I would carry the risk of further falls while any profits would be canceled in favour of the sellers. It's better to wait for bigger falls and for the authorities to stop canceling trades before buying.

Jacob is right. There are patterns. It's unlikely the pattern is as simple as it seems [and as many people have observed].

Mqurice