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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (17872)	3/9/2016 6:31:06 AM
From: John Pitera	2 Recommendations Recommended By 3bar roguedolphin Respond to of 33421

Hi Ox, I really feel for you.... but you did the right thing ... if the funds were for trading and not long term investment, it's best to get square and enjoy yourself on vacation. That was the Rule in "Reminiscences of a Stock Operator" I have a horror story back from the 1980's bull markets that has all the elements of making errors and then compounding the situation by trying to call audible at the line of scrimmage... however in this case we were on the pay phone at JFK going from short positions that were supposed to be closed out...to Long positions that had endured short squeeze and an irrational fear of an Elliott wave 3rd of a 3rd of a 3rd vertical advance... coupled with being up for two days in a row trying to get back from Sydney and Hawaii...trying to attend my Grandmother final day with a fatal Pancreatic cancer.... and she was up in the Hospital in Little Falls New York...... One day I'm going to write a book....... and maybe collating and editing much of the yammering on this thread and others will serve to flesh out the narrative. WOW... been up almost all night working at developing Algorithmic Trading systems and get more comfortable with easy language..... I have been looking at using indicators in unconventional ways.... things like average true range volatility bands around RSI's and Rate of Change Oscillators. Building a GANN wheel of 9 on excel using the formula's given in Connie Brown's latest book. Building it on Oil..... I think the low price was 26.09 for the starting point for the wheel. I love Joe Kernan and Becky Quick.... Joe is so smart and has the best sense of humor and Becky is right there with him...and she knows how to drop a phrase or a tease with a turn of the eyebrow and a wink -g- John ------------------------- I was getting a kick out of reading this guys comments yesterday I was getting a kick out of reading a bit of the Umair Chaudhry Controller at Morgan Stanley Hey PH.D. in mathematics and other sciences. Change up your financial models, crude oil and equites should not have >66% correlation.PhDs coming out of top colleges, being hired by wall street, making tons of money, but do they really understand the fundamentals of financial markets? With the rise of index trading and high correlations among different asset classes, primarily fueled by quantitative models that buy and sell in huge volumes. Isn't there something wrong with this? Should the shares of a tech company, for example, Netflix or Twitter, really go up and down with the prices of crude oil? But they do! Because of index trading and these models that these "super smart" prodigies create. Who's to blame? These guys or the people that are hiring these guys? Or is this primary because of how this entire financial system is build on derivatives. A price of X will rise because it derives its value from Y. But should it? Shouldn't supple/demand and sentiment control the value of each individual derivative? The point of this post is not to diss these math guys, I'm just thinking out loud here. Would love to hear your thoughts, because in my opinion, this market is broken! Cheers! LikeComment