Mar

2

The STock Market and Finance from a Physicist's Viewpoint by MFM OSborneThe Earl's post on epigenetics brings back the memory of the great M.F.M. Osborne from 50 years, by far the most creative force in the efficient markets field with the possible exception of some readers of this site. Osborne liked to say that you should count the number of highs at 7/8 and lows at 1/8 and compute the ratio each day for individual stocks and then you'd get an index of specialist preference that was highly predictive. Like Babbage, he developed the first automated exchange algorithm some 40 years ahead of its first instantiation.

Ken Drees writes:

As with retail sales signs in grocery stores for example, 9.99 seems smaller or cheaper than $10. When trading was done in 1/8ths or teenies to me a number and 7/8ths always seemed greater than the next whole number. Why? I don't know. I felt that the next whole number was then a lock and that gave me the feeling that I had something better than what its listed price indicates. Now everything is pennies — my mind locks into price zones now down to other penny — something was lost.

Everchanging cycles in store price strategies. Instead of 2 for a dollar, now its 3 for 5, 4 for 5, 2 for 7. Its must be targeted that an average person has trouble making the division to do the odd calc. Is this strategy employed in markets now with the signposts of that nice fat 5/8th, a kosher 1/16th above the low, or good old "half" now gone missing? — it's all now just forgettable "digies".

I miss those fractions quotations. I could always visualize them.


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