Thursday, July 23, 2009

Quick market commentary & HFT update



  • We have reached a good exhaustion level in the NASDAQ Demand Pressure 2 (% above Volatility Band 2) whichshould provide good downside once the market flips

  • Another good bloomberg video and a New York Times article that shows you that HFT Traders cannot hide anymore

  • The HFT's ("HAL9000's") will play all the conventional analytical tools therefore it is no wonder that for instance more that more Patterns fail (my 2nd Derivative theme and here). This was my primary reason to develop SUSI to have tool that is not in the mainstream and also stresses more the liquidity aspect than staightforward price levels (which are easier to capture for the Hal9000's)

  • The market has gone in overdrive which is typical for Megaphone patterns or broading tops

  • Exuberance will have to face reality (see Fari )

  • Fundamentals differ from the Exuberance (here and see here) and will catch up with the Market once the HAL9000 HFT Machines turn around. SUSI will tell us when the time has arrived which should be fairly soon

  • Pls also bear in mind the differnt timeframes:

short term:bull


med term: bear market rally


long term: bear market




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