The ACD Method

It’s been a long time since i posted, think it time to ask some newbie questions. Mav I have question or two ;
Since government’s and traders are all participants within the marketplace due to their invested interests in the marketplace , do their inherent biases created inefficiencies in the market which to some degree effect fundamentals themselves and how they are interpreted ?
And also as individuals in the marketplace are we exploiting each other’s inefficiencies or are we actually trying to interpret and value the market or both? Some clarity and the question would me much appreciated

 

Hi, wish I could answer you for sure....


I have only one question for you, who cares ? I don't, I have not idea why someone is selling/buying my other side could be many reasons including a hedge on an option... who knows... if the last ten years of equity markets have proven anything.... anything can happen anytime

 

i'm sorry if the question has no relevance to you , but i'm the kinda trader that wants to understand the some smaller details i.e the moving mechanical parts of the market , i also remember fisher saying that he would read the news to capture important details before market opening if my mind serves me right , i also remember Paul Tudor jones stating the following stating the following "The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge". i'm just trying to better my understanding

 

A bias does not create an inefficiency. Inefficiencies are usually structural. Just because everyone is bullish does not mean the market is not efficient. Value is discovered by measuring what people are willing to give up to purchase what they want. As the old floor traders use to say, when a trade takes place, two people agree on price but disagree on value. Value is subjective.

Fundamentals are different then price. The fundamentals describe what something is worth without the supply and demand constraints. The supply and demand constraints are what creates the market.

 

Thanks Mav , you've given me some food for thought

 

http://www.financialsense.com/contributors/cris-sheridan/feedback-loops-black-scholes-hft-cicadas

feedback loops, shiller wrote a long hard to read book on the subject (irrational exuberance)

 

Mid month sectors and a few others for ole Sunday night.

It’s been some time since XLK confirmed all three numbers but as you can see it’s very close.

XLV has been working off some high negative 30 day numbers and is down to a -1.

JJC confirmed all 3 on 4/29/14 and again on 5/7/14. You can see the 5 day has pulled back per a couple of -2 days but they could work off quickly. It had a monthly A up on Thursday and it will be interesting to watch going forward. Mav has previously posted that FCX is his proxy for JJC.

 

Thank's King , some interesting element's within the article

 

Mav have you been following copper? This move is baffling me we have confirmed weakness in China and yet prices are rallying . Maybe this is a good example of bad news/good action. Do you have nl or quarterly levels really tempted to put on a small short position here.

 

Thanks keep em coming!