arthatek

Currency Headwinds: Charting the Dollar-Adjusted Market

well that's the best bull case yet. it will run yet further higher. there is actual value in companies, just not as much as 2007's prices claimed.

Are Humans in Control of the Market? Not So Much

wouldn't it be great if hedge funds returned to valuation models ? the idealistic usage of the stock market is the efficient allocation of capital. right now these players are only concerned with mindless momentum. perhaps the solution is to simply drown out this small money with much larger money (with the same fast liquidity) that is keyed to valuation and fundamentals. in other words investment that builds value (which is the whole point of allowing us to trade in the market — we process information and build value in industry by the efficient allocation of capital. that's OUR job.)

many systems also do read and react to news feeds. the only way is forward.

Google and the Evolution of Search III: What's Next in Search? Much, Much Better Search

holding his cards close to his chest as usual.

@alan search terms proximity on a page to each other is one of those thousand parameters factored into your search results

China's Arithmetic When It Comes to the Dollar

very good perspective! I've been buying mostly foreign stocks.

one thing I've been annoyed at during the plummet is that so many people seem to only perceive the US market. as though Russia and Brazil and China didn't crash. as though nobody else was on the planet at all. if its not in an ADR it doesn't exist.

the US needs to be less myopic, needs to start acting globally going forward.

Warren Buffett's Stock Holdings Outperform

whoops, sorry Warren I think I shorted KMX the other day. my apologies

Past Years Most Correlated with 2009

useless. nothing against bespoke, they rule. but this insight is useless.

Observations on the Credit / Equity Relationship

@munim google individual phrases. look also on zerohedge, there was a post a few weeks ago linking to a large folder of PDFs teaching the intestines of credit markets and derivatives.

Notes on CDS Market, De-Risking and Re-Risking

and it should be deader still. we would all sleep much better.

if it was just hedging against underlying it would be ok and a useful financial instrument.

Leveraged ETFs: New Source of Systemic Risk

awesome, the inverse ETFs will save the economy ! the perma-bear gamblers will bail out the banks and real estate by their daily game of gamma hockey in the afternoons.

on the flip side down days will end in puking fests. let's see what happens today. SKF SEF above average volume. IYF below avg.

How the Quants Perpetuate Market Distortion

wall street : its a crowded trade

I find it kind of a logical evolution: once information is known, its priced in. old fashioned stuff like picking stocks is a known game : the average investor can do that with all the information available these days. so the game is forced to move deeper, to evade this pesky average-man investor (ie "portable alpha" – getting the biggest slice).

on the one hand that's trading faster than humans can react (the other hands being exotic options, exotic credit markets, dark pools that don't move the official public market. the main market is almost a hood ornament compared to what the exotic credit markets are doing.)

I envision the market eventually turning into very fast trading, say 1000x the current speed. people will forget about waves (charts) and move to some kind of scattering theory analysis. seriously. human trading is already on its way out.

already watch SKF using book trader and the bid/ask/trades are just spastic. its like catching paint with a tennis racket.

Understanding Triple Leveraged ETFs

short them both and make 81% in 5 months. what could go wrong ?