Interesting Links

[Pablo]

Despite a large percentage move for the major indices last week, the tape leaves
much to be desired. While the Nasdaq and Nasdaq 100 climbed slightly above some
resistance levels last week, and a few select breakouts have succeeded, there
appears much more wrong than right with this tape:

First, the major indices lack any accumulation. Other than Friday's options
expiration -- which caused volume to surge -- and Thursday's higher volume
..............................
This email was sent by Edward Hornstein, 60 east 42nd street, suite 1144, ny,

Interesting. I think we are in the firt scenario the author gives, I also remember 2010 and was kind of convinced it would break down, they came the QEII and the developments the Mr Hornstein relates as a consideration of what could be an alternative escenario.......... a rally resume mode.......... In early summer 2010 there were lot of indicator pointing to a posible doble deep as this 2011 summer, I consider this time is more clear will see contraction on GDP (yoy) one or more of these quarters ...... international developed economies talking ..........but just in case I´m too wrong and for the similar 2010 escenario is good to know that german Bundesbank has said today they envise a robust growth for the 3 quarter just about to end....... german economy is very open (Imports+Exports as % GDP are high, they are 2nd rank in export countries) and the guys in Bundesbank have good info or course.........

PD: I arrived here trough EB forum

[Adriano]

Quite impressive:
http://thingsappleisworthmorethan.tumblr.com/

[ilonaross]

http://www.huffingtonpost.co.uk/2011..._n_983156.html

Stay tuned.

[ilonaross]

I will have a full market update this weekend. However, I wanted to put out a
quick note to underscore two points.

First, and most important, is that high levels of cash and preserving capital
are key. In my past report, I discussed the characteristics that led me to
believe the market's rally off the August 8 lows was anything but a "fat pitch"
and lacked the power associated with a new uptrend. Since then, the market
indices have traded sideways, while institutions have rotated from sector to
sector distributing stocks en masse. It now looks plausible that the August 8
lows will be taken out and that another down leg in this bear phase is upon us.


While the mass media is now admitting this is a bear market, the market has
given us plenty of clues over the past few months that its tone was anything but
healthy. In fact, the tape is much worse than what the indices tell us- many
former leaders have fallen 50-75 percent while many financial and commodity
stocks are selling at levels not seen since the crash of 2008-09.

The bottom line is that we are in a bear phase for stocks, the market's trend is
down, and there continues to be serious damage and distribution almost every
day. Faced with these indisputable facts, preserving your capital, and
psychological capital is of utmost importance.

Second, while it is fruitless to predict how long the downtrend will last, the
good news is that this bear phase will end too. As we move lower, and selling
picks up, the doomsdayers will grow louder and louder that the world is ending.


The market has an incredible ability to forecast the future, so do not be
surprised when the market ultimately bottoms while all the news is bad. I can
promise you it will. I always maintain that these bear phases are a prudent
speculator's best friend- as they lay the foundations for future bull markets.
Our economy has survived many wars, political unrest, economic hardship, panics,
stock crashes, depressions etc. So to will it survive the various problems
facing it today. While significantly lower prices could be in store for the
market in the near future, a strong bull opportunity could arrive sooner than
people realize. (I will outline this over the weekend). While the negativity
is rampant as stocks go lower, remember the importance of preserving capital to
take advantage of the next giant opportunity that will most certainly emerge
from the depths of this bear market.

As always, please email me with any questions or comments.
This email was sent by Edward Hornstein, 60 east 42nd street, suite 1144, ny,
NY 10165, using Express Email Marketing.

[Billy]

http://www.schwab.com/public/schwab/...rs_101711.html
Key Points
Market volatility has spiked, starting with 2010's flash crash and culminating in this year's wild August, bringing asset-class correlations up with it.
High-frequency trading and the use of leveraged exchange-traded funds (ETFs) are the primary culprits, but the impact isn't all bad.
What are regulators doing and saying about the phenomenon?

Billy

[adam ali]

The failure of economic thinking/models by academicians; as relevant today as it was when it was written in 2009:

http://blogs.ft.com/maverecon/2009/0...#axzz1bbhiuJpi

The readers' comments are also interesting and instructive.

[ElksFB1]

http://club.ino.com/trading/2011/10/...k-derivatives/


Little humor on bank derivatives ..... thought I would share with EV group.

Enjoy!

[Neil Stoloff]

The upper bound for HF trading is the speed of light. It looks like we're about there.

http://www.bbc.co.uk/news/science-environment-12827752

Neil

[nickola.pazderic]

The few times realized volatility has eclipsed implied volatility, it presaged large declines

[Pierre Brodeur]

I came across this link which is a whitepaper on a new indicator the CBOE has created in order for traders to refine their VIX market timing signals

http://www.cboe.com/micro/skew/docum...perjan2011.pdf