Well, I am not expecting anymore "6sigma" events...I am calling it now "12sigma"...( spelled : one, two sigma; twelve sounds so disastrous ) By the way, I received today an invitation to celebrate the opening of their new data processing centre : http://www.interxion.com/ And this company is also working very hard to offer ultra low latency services : http://www.eunetworks.com/ So basically, they are working very hard to fulfil my "12sigma" dreams...
ASU Good article, although a little overwhelming to me as I am not sure how I could trade itâ¦. What I have been able to use DOW is comprised of companies doing a lot of international business DOW has decoupled from US economy â where historically itâs been more or less the barometer DOW is closer to representing a one world economy than ever before too â unfortunately sans the US - imo Asia & Europe play a more interregnal part of my daily whereâs waldo before the mkt opens analysis than ever before (always a good idea to have a map before going into battle - imo) So much for being an isolationists â if one was ever so inclined See Ya RN
There is a correlation expectation priced in the options market. You could trade it by buying options on index components and selling options on the index or vice versa, depending on your forecast for actual correlation vs. implied. I thought about doing this about 5 yrs ago and ruled it out as a pain in the ass way to get single digit returns. But if you have a strong view on correlation it may be worth it.
Check out http://www.elitetrader.com/vb/showthread.php?s=&threadid=180761&highlight=revenues Meanwhile, foreign revenues represent more than 45 % in S&P 500 companies ( at least in the companies that are reporting ). Ergo : earnings expectations are much higher correlated to NON US macro data than ever before.
The application of Portfolio theory and all the rest boils down to nothing more than a strategy. If large numbers use it blindly (like they do) it breaks down. It is amazing that these "professional investors" follow academic tenets while having very little understanding of what they are investing in. Such hacks could not exist in an efficient market, and I am not just referring to the theory but rather an efficient market with regards to end users as well. How many moderately affluent people out there are being charged 1 - 2% for a "portfolio of ETF's" by supposed, "investment professionals?" The amount of highly paid dead wood the financial sector supports is truly astounding.
low volatility??? You must be nuts, when have markets moved 8-10% in a matter of 2-3 weeks other than during absolute turmoil? What are you talking about??? We are bound in a large range but within that range markets and all its components are incredibly volatile.
ASU, And hereâs one for you I remember when you posted that, intrigued I started poking around a little and connecting some dots â Fast forward I coined my own analysis technique based on what I foundâ¦. IA (Influence Analysis) Which I was in the process of explaining/ laying out in another thread when in came the goof balls⦠oh wellâ¦. (last time I make that mistake) If we ever meet I owe you one big ass dinner Sir⦠--------------------------------------------------------------------------------------------------------------------------------------------------- BD, Truth be known I am options ignorant â I use them for insurance on swing trades, and track some for the influence they may impose on the underling stock I trade â other wise the Greeks remain Greek to me⦠Trade Well Gents RN
Yes, low volatility!!!! I'm not nuts, I just happen to be one of the many traders who don't just daytrade stocks and ES!!!! Even where something like weekly ranges are decent, correlations like this are normally reserved for times like summer '97, '98, '01, etc.
Things should start to get a bit wild in the next 7 minutes!!!! This market is just too boring today.