Tyler Durden over at Zero Hedge explains this “crap rally” in great detail in Equity Rally Reaches Escape Velocity. The future implications are not pretty and time is quickly running out…
Although I don’t currently post about it this Ninja does quite a bit of intraday trading using proprietary “gray box” strategies (Working on a NinjaCam. Patience). Some of the tricks in my arsenal consist of hunting for and abusing “black box” strategies. This has become more difficult as it would appear that quite a few quants are simply shutting off their computers. Liquidity is dying as evidenced by the ever increasing number and ever increasing size of the overnight gaps in single names and entire indices.
Although I don’t currently post about it this Ninja does quite a bit of intraday trading using proprietary “gray box” strategies (Working on a NinjaCam. Patience). Some of the tricks in my arsenal consist of hunting for and abusing “black box” strategies. This has become more difficult as it would appear that quite a few quants are simply shutting off their computers. Liquidity is dying as evidenced by the ever increasing number and ever increasing size of the overnight gaps in single names and entire indices.
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5 comments:
Hey Ben,
If you've got a good trading system, why not offer it at http://www.collective2.com and earn yourself some quid?
I'd be interested!
@ Dave
Working on it...
Ben you don't think there's a risk getting short with the 20/50SMA catching up below? Seems to be safer to get short once those guys are broken. I'd be interested on your thoughts on that.
I'm short GOOG, GS, IYR (the first two on friday, the last today)
@ Vijay,
We'll, I'm pre-emptively short 1/4 or 1/2 of my positions from last week. I'm looking to see how things behave tomorrow before adding.
Then I would cover some of my shorts around the 20/50 SMAs so I would have ammo to short a bounce.
Gentlemen I am not seeing the crap rally as crap. I would expect a flattening of the indexes with 100 to 200 pt swings for the next 4 months. Until good or really bad news hits the market. Look longer than a week.
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