Oct
23
A Shocking Consilience, from Victor Niederhoffer
October 23, 2008 |
date level change date level change
fri 10-10 891 -21 fri 10 17 933 -08
mon 10 13 1017 26 mon 10 20 990 57
tue 10 14 1002 -24 tue 10 21 959 -41
wed 10 15 903 -09 wed 10 22 903 -56
thu 10 16 941 38 thu 10 23 915 12
I dare not put the change for 10 17 up except to say that my two year old played heads with the market, and beat me.
Alex Castaldo updates:
The streak continues. Friday of this week was again in the same direction as Friday of last week (down).
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So what's Aubrey buying (or shorting) these days?
There is absolutely nothing unusual, chaotic or (dare say) unpredictable about goings on in the equity markets this month. This revelation comes late for most - to capitalize on the drop. But if one is to figure out the market’s next motions - one should understand the mechanics of the drop. Concise description of October’s SP action: 1. thru 10/10: every 38.2% bounce was heavily offered (on four distinct occasions). 2. ensuing rallies from quick 837 oversold were then consistently met at 61.8% (on three distinct occasions), working the legs of bearish symmetrical A-B-C-D-E triangle. 3. the last (the E)-leg was stone-walled with offers both in US and overnite trade at just over 38% - on three distinct occasions over 10/22-23 sessions, including before and after 10/23 close at just over 915. 4. resolution of wave4 triangle is always swift: anyone surprised by Asian activity - has not been doing their homework. 5. finally - what now, since bearish triangle is about to resolve: NO ESCAPE. The more opposition, that will be encountered (hoping on government equity support, on Fed support, on lower commodity input price support, on pre-weekend shortcovering, on circuit-breakers, praying, etc) - the harder she’ll drop, eventually. So use such opposion as an opportunity to offer into every classical retracement - here you have it. Selling retracements beats selling into holes! In the end: your bottomline = your entry - exit PRICE; not descriptive lyrics of professional non-traders. Best prices will only land on statements of traders, quickly calculating and timely inputing their sell and buy orders. The most handsome and talented 2-year old just lacks organization to accomplish this.
P.S. Almost all currency pairs and commodities will hit opportune levels during this equity “uncertainty”. One can play any of those markets, if one’s access to equity instruments is compromised by government, regulators, infra-structure or one’s broker
Art Imitates Life: The title for the Heroes episode this week, “Eris Quod Sum” (You will be what I am)