Thoughts about the markets, automated trading algorithms, artificial intelligence, and lots of other stuff
I use a Senseo … and I love it. Great coffee or tea, a cup at a time, when I want it, with no clean-up.
Last week I got an e-mail from the company that makes these gourmet coffe machines. As a marketing experiment, they are giving away the Senseo to "influencers." To get yours, follow the link and let them know that you like tea and coffee and that you don’t yet have a single-serving coffee maker.
Funny thing happened to me in Canada this week as I got off the plane and exchanged some money. I gave them $140 US – and they gave me $126 Canadian. Huh? That’s Loonie.
As the Fed hints it may stop easing and the dollar may be bottoming, an article on Bloomberg notes that "futures traders are betting for the first time since December 2005 that the dollar will gain against the euro."
Funny thing happened to me in Canada this week as I got off the plane and exchanged some money. I gave them $140 US – and they gave me $126 Canadian. Huh? That’s Loonie.
As the Fed hints it may stop easing and the dollar may be bottoming, an article on Bloomberg notes that "futures traders are betting for the first time since December 2005 that the dollar will gain against the euro."
We’ve talked about the "line in the sand" (where the bulls and bears are battling at the 1400 level in the S&P 500 index). Well, at the end of this week, we’re still at the same place.
The emotional momentum of last week has faded some, however the market held up nicely in the face of additional bad news this week. From my perspective, that’s a positive sign.
I expect a bunch of smaller traders to short the 1400 level into Tuesday’s Fed meeting. It seems like a safe trade. So, while a "correction" downward wouldn’t surprise me here; I am not bearish. In fact, I think a move above that level would trigger a rash of buying (both organic and short-covering) … and is thus more likely.
The Fed meets this week to discuss the manic-depressive nature of our economy. If you are a glass-half-full type of person you could worry about both Recession and Inflation.
From a trader’s perspective, though, the markets have been trading much better.
On a related note, I heard lots of talk among traders this week about the Dollar potentially putting in a bottom. We’ll see.
While I was researching this, I found a site that makes it easy to calculate the affect of inflation. Click the following link to see
What Is A Dollar Worth?
There is a fill-in-the-blank calculator that lets you figure-out things like: if you bought a house for $ 54,000 in 1973, then it would cost $262,000 in 2008 dollars. Check it out.
The Fed meets this week to discuss the manic-depressive nature of our economy. If you are a glass-half-full type of person you could worry about both Recession and Inflation.
From a trader’s perspective, though, the markets have been trading much better.
On a related note, I heard lots of talk among traders this week about the Dollar potentially putting in a bottom. We’ll see.
While I was researching this, I found a site that makes it easy to calculate the affect of inflation. Click the following link to see
What Is A Dollar Worth?
There is a fill-in-the-blank calculator that lets you figure-out things like: if you bought a house for $ 54,000 in 1973, then it would cost $262,000 in 2008 dollars. Check it out.
I enjoy the TED website, whose tag-line is "ideas worth spreading." They host one of the "cool" conferences for thinkers and doers. Recently, they opened their content vault and offer a wide range of free videos on technology, business, science, culture, and global issues.
This video is of a presentation by Jill Bolte Taylor. She shares a powerful story about how our brains define us and connect us to the world and to one another.
Jill is a neuro-scientist who had an opportunity few brain scientists would wish for: One morning, she realized she was having a massive stroke. As it happened — as she felt her brain functions slip away one by one, speech, movement, understanding — she studied and remembered every moment.
I found it interesting and inspiring, and hope you do too.
This week I’m going to use an optical illusion to help make a point about the publics’ perception of what is happening in the markets.
Instead of Bulls and Bears, perhaps the market is like a frog or a horse.
It simply depends on your perspective.
As you look at the picture on the right, you’ll see a frog sitting on the edge of a pond.
However, if you turn the picture (or your head), you’ll see a horse that is poking his head out of the stable.
Things are not always as they seem on first glance.
Markets At The Crossroads: Decision Time:
As it stands, the Markets have been acting
quite well. They continue to rally, even when there is bad news in the
marketplace. From a technical point of view, though, we are at a
crossroads.
I prepared the following chart to show the arguments for both the bull and the bear cases. It is a daily chart of the S&P 500. The market’s downtrend line, since October, is marked in blue. The red horizontal line shows that this is the fourth time we’ve hit this area since late January.
The question is whether we go up or down from here.
Like a serial cliff-hanger, we’ll have to tune-in next week to see if
anything gets resolved.
This week I’m going to use an optical illusion to help make a point about the publics’ perception of what is happening in the markets.
Instead of Bulls and Bears, perhaps the market is like a frog or a horse.
It simply depends on your perspective.
As you look at the picture on the right, you’ll see a frog sitting on the edge of a pond.
However, if you turn the picture (or your head), you’ll see a horse that is poking his head out of the stable.
Things are not always as they seem on first glance.
Markets At The Crossroads: Decision Time:
As it stands, the Markets have been acting
quite well. They continue to rally, even when there is bad news in the
marketplace. From a technical point of view, though, we are at a
crossroads.
I prepared the following chart to show the arguments for both the bull and the bear cases. It is a daily chart of the S&P 500. The market’s downtrend line, since October, is marked in blue. The red horizontal line shows that this is the fourth time we’ve hit this area since late January.
The question is whether we go up or down from here.
Like a serial cliff-hanger, we’ll have to tune-in next week to see if
anything gets resolved.
During the weekend, I visited an art fair in downtown Fort Worth. While walking through the exhibits, I came upon the performance stage and stopped to listen to a jazz and swing band play. One of the songs stuck in my head. It was originally done by Louis Jordan, and it is called "Is You Is … Or Is You Ain’t?"
While thinking about how the Markets are at a crossroads, I hear the lyrics ask:
Is you is … or is you ain’t, my baby?
The way you’re acting lately makes me doubt …
When I got home, I kept singing the song. A quick search found various versions, including this one. From the Tom & Jerry cartoon. Very nicely done.
That brought back memories of old TV Shows: Mister Ed, Courtship of Eddie’s Father, Speed Racer, etc. Well, I found a site that has over 5,000 TV tunes. Click here to visit Television Tunes and bring back some memories.
