Wikipedia definition http://en.wikipedia.org/wiki/Program_trading There is no exact definition. It is generally assumed that problem grading uses software of some sort to execute complicated trades that would be very difficult without software. I don't understand the point of getting into a flame war over a definition that can be answered though wikipedia
Program=software? Investopedia definition: http://www.investopedia.com/terms/p/programtrading.asp Large trades executed through computers
Getting back to the assertions that you've repeatedly made. how exactly do fundamentals come into play? I was involved in designing program trading and stat arb algorithms in the early 1990's and yet I'm bewildered by your comments. Clearly I have much more to learn....
http://www.cyclesman.com/s&p_5028.gif Earnings have increased at the same rate of the rise of the index, therefore resulting in a stable historic PE ratio of about 18
and the connection with program trading is? you may be able to impress your frat boy buddies by throwing about fancy terms like program trading (not that it's particularly fancy) but you are a little out of you league here.....
He's trying to show that indices are based on fundamentals...now he's jumping to something else he's wrong about and is trying to justify.
He really should just stop....and focus on his marvelous portfolio. But he won't... I wonder if he's buying today's giant dip. Haven't heard a peep about that have we?