Capitalogix

Here Are Some Links For Your Weekly Reading - April 8th, 2017

 

Here are some of the posts that caught my eye. Hope you find something interesting. 

 

Lighter Links:

• How AI and Blockchain Will Change Business Organization. (HuffPost)
• Pluto Has Been Officially Reclassified as a Planet!. (Futurism)
• The Philosophy of the Matrix: from Plato and Descartes, to Eastern Philosophy. (OpenCulture)
• Tony Romo to Replace Phil Simms in Broadcast Booth. (NFL)
• The 13 Best April Fools’ Day Pranks of 2017. (Slate)

Trading Links:

• How Hackers Hijacked a Bank’s Entire Online Operation. (Wired)
• America’s System of Checks and Balances Seems to Be Working. (Economist)
• How Much People in the Trump Administration are Worth. (NYTimes)
• Santoli: Here's Why BlackRock is Throwing in the Towel on Human Stock Picking. (CNBC)
• Here’s 48 Hedge Fund Terms Every Investor Should Know. (VisualCapitalist)

Ultra Spiritual Trading ... With JP Sears

Had a quick chat with JP Sears at a Genius Network event, in Phoenix, this week.

 

 

 

Turns out we have some similar ideas on trading.

JP Spears is famous for his humor. However, before he found this "character," he made his money as a spiritual coach. One step under the surface, I believe there are a few consistent hidden messages in his humor. 

The first hidden message is to let go of what served you that no longer serves you.  This is also a key to profitable trading. The market doesn't care what your favorite trade looks like. Nor does it care whether you're comfortable, or how you made money in the past.

You have to be more committed to your results than you are attached to your process.

Many times, your favorite practice is more beneficial to you as a nightlight, which keeps you comfortable, rather than as an alpha-generating strategy, tactic, or technique.

The second hidden message in JP Sears' humor is to look for happiness where it is, not where it isn't.  This also is a key to trading. It doesn't make sense to look for a good trade in a bad market. The key is to understand where your edge is, and to use it where and when it exists.

As I said .. Ultra-Spiritual!

For more, watch this. 

  

 

In the video, JP says that we should all stop using our "analytical minds" to trade, and instead use our third eye - and while  I don't think my third eye is the answer, I do think our analytical minds can confuse us instead of help us. 

Look at it this way: Less than 10% of active traders beat the S&P 500 any given year; and if they beat it one year, the chance is less than a coin flip, that they beat it again the following year. 

Most traders understand that analysis and knowledge isn't enough anymore. 

So what's the answer?

Well, if you watched the video, I'm leaning towards algorithms and artificial intelligence. 

That doesn't mean looking for the "Holy Grail" – or a good set of three to five trading systems either.  First, there's no Holy Grail, and it isn't realistic to believe a few systems can handle the chaos of modern markets.

There's always something working in the markets, but there isn't something that works all the time. 

There's something to be said for knowing when to switch it up and try something new. 

JP Sears was, and is, an emotional healing coach, and licensed "Holisitic Coach Advanced Practioner," but he found then when he posted a YouTube video he was excited when he got a couple hundred views (you can see his more serious origins in this video from four years ago). 

He added the funny/satirical aspect as a complement to what he already knew, and it took him to the next level. He now gets millions.

To see more JP Sears, here's an article I shared a couple months ago.  Or, get his book How To Be Ultra Spiritual.

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Here Are Some Links For Your Weekly Reading - April 2nd, 2017

 

 It's a crazy world ...

 

Here are McCain's full remarks.

 

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• The Most Intelligent Presidents in U.S. History. (US-Presidents)
• The Merging of Humans and Machines is Happening Now. (Wired)
• Does the Sound of Noisy Eating Drive You Mad? Here's Why. (Time)
• How Tom Brady's Super Bowl Jersey Was Found - the inside Story. (ESPN)
• The Man Who Shot Reagan is out of the Mental Hospital and Living with His Mother. (NYMag)

Trading Links:

• House Committee Passes Bill to "Audit the Fed". (ZeroHedge)
• "Until Market Abandons Hope for a Tax Deal, There Will Be No Significant Weakness". (JPM)
• Here's How High-frequency Trading Has Changed the Stock Market. (Credit Suisse)
• Learn from Warren Buffett's Diversification. (SeekingAlpha)
• Trump Taps Kushner to Lead a SWAT Team to Fix Government with Business Ideas. (Washington Post)

Here Are Some Links For Your Weekend Reading - March 25th, 2017

Let's play "Caption This Picture."

 

Found it under the headline "Aides Wrestle Drill From Trump's Hands As He Tries To Remove Obama Listening Device From Skull."  What would you caption it?

Here are some of the posts that caught my eye. Hope you find something interesting.

  

Lighter Links:

• ‘Homo Sapiens as We Know Them Will Disappear in a Century or So’. (Yuval Noah Harari)
• A Stunning Video of Mars that Took Three Months to Stitch Together—by Hand. (Wired)
• Stephen Hawking is Going to Space. (TheNextWeb)
• Darth Vader’s Suit Would Cost $18.3 Million in Real Life. (Dailyinfographic)
• How to Tell a Good Story, as Explained by George Saunders, Ira Glass, Ken Burns, Scott Simon, Catherine Burns & Others. (OpenCulture)

 

Trading Links:

• Steve Cohen is Trying to Teach Computers to Think like Top Traders. (Bloomberg)
• John Oliver on the Federal Budget. (Ritholtz)
• Measuring the Cost of Living Worldwide. (Economist)
• Are Bonds Flashing a Warning Sign for Stocks? (SeeItMarket)
• Quants are Eating Away at Wall Street's Edge. (QuantNews)

Here Are Some Links For Your Weekend Reading - February 26th, 2017

I think frameworks are an important tool.  Here's one that seems to be in use a lot recently.

 

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• The Future of Work Manifesto. (TechCrunch)
• The Art and Science of Learning Anything Faster. (FourHourWorkWeek)
• The Five Best Super Bowl Commercials. (Washington Post)
• How to Find out If Your IPhone 7 Has Faster or Slower LTE Modem. (iPhoneHacks)
• Google Flights Will Now Tell You When Fares Will Increase, Help You Find Cheaper Tickets. (TechCrunch)

Trading Links:

• UBS Wealth Chief on Fintech: 'We are beyond Fighting'. (BusinessInsider)
• Uber Hires NASA Veteran to Help It Figure out Flying Cars. (TheVerge)
• Trump's Bonfire of Banking Rules Could Burn Us All. (Flipboard)
• The Art of a China Deal. (Chinafile)
• Microsoft: Tech Companies Aren’t Getting into Financial Services to Make Friends with Banks. (CBInsights)

Here Are Some Links For Your Weekend Reading - February 18th, 2016

The Great Canadian Wall is up in the north.  Looks like it will hold till spring.

 

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• The Genomics Intelligence Revolution. (TechCrunch)
• Generation Adderall. (New York Times)
• Spending 10 Minutes a Day on Mindfulness Subtly Changes the Way You React to Everything. (HBR)
• Why You Will Marry the Wrong Person. (NYT)
• The 5 Revolutionary Technologies that Will Dominate 2017. (Salesforce)

Trading Links:

• The Immigration Ban is a Headfake, and We’re Falling For It. (Medium)
• Biden at Davos: Russia is Greatest Threat to Democracy. (USAToday)
• Volatility at Lowest Level for over a Year, Says S&P Dow Jones. (HedgeWeek)
• Jeff Bezos Just Passed Warren Buffett to Become the Third Richest Person in the World. (CNW)
• Ray Kurzweil: the World Isn’t Getting Worse. (GeekWire)

Why Are The Patriots So Good?

Some things speak for themselves.

The Patriots just came back from a 25-point second-half deficit to win the Super Bowl.

There is a difference between 'luck' and 'skill'.

Nonetheless ... luck favors the prepared.

And, in life as in sports, hard work beats talent, when talent fails to work hard.

The Patriots, under Bill Belichick, epitomize that. 

Belichick has been a coach in 10 of 51 Super Bowls (seven of them with Tom Brady).

When you see this picture from the 2000 NFL Combine, it's hard to believe that Tom Brady would be a 3-time Superbowl MVP taking the Patriots to their 5th under his reign.

 

via CBS Sports.

It didn't happen by accident.

The Patriots are a well-oiled machine, and it's not because their players are better than the rest.  

Keep in mind, the NFL is a league at the top of the food chain (their athletes are the best of the best).  Moreover, the NFL actively creates rules designed to level the playing field and create parity.

So, it is hard to create a team that 'can't be beaten' –  When it happens, it happens because of culture, coaching, and process.  Ultimately, somehow, winners find a way to win. 

Bill isn't known as the friendliest (and he's certainly not known for dishing out praise) – but he is known for discipline (and lauding hard work when it's deserved). 

More importantly, Belichick created a framework of success that isn't reliant on the individual - and it is that which allows the individual to shine. 

Frameworks create the structure that allows, focus, specialty, and the freedom to improvise.

The System is the 'system'; but, within it, you can measure what works, who contributes, and use it to identify the best things to try next.

Win, lose, or draw ... some things speak for themselves.

The Dow Just Broke 20,000

In 2016, we saw some decent pull-backs and volatility.

Then Donald Trump was elected President.  

On November 22nd, the Dow reached 19,000 ... and in only 42 days, it's broken 20,000. That's the second-fastest rise ever.

Coincidence?

 

 via WSJ

With 30 components providing point value ... the 5 "heavyweights" this year are: Boeing, IBM, 3m, United Healthcare and Home Depot.

Are the markets  responding to Trump's consistency with his campaign messages?  Just happy to have some hope in change?

So, as the presidency continues, will the trend keep going up?

What do you think?

 

Related articles

Dow hits 20000 on revived Trump rally, earnings

The internet is fact-checking Trump's first UK interview

The Inauguration of Donald Trump by Vice News

Market Confidence Remains High Despite Glitch

Here Are Some Links For Your Weekend Reading - January 29th, 2017

With the explosion of Alternative Facts and Fake News ... It's important to remember to verify what you read. 

 

 

Here are some of the posts that caught my eye. Hope you find something interesting.

Lighter Links:

• Why Each Side of the Partisan Divide Thinks the Other is Living in an Alternate Reality. (The Conversation)
• Check out this Automated Resume Builder (It Could Help Former President Obama Get a Job). (Inc)
• Cybersecurity is Everybody’s Business. (Burrus)
• 25 CEO’s List 20 Things that Keep Them up at Night. (LeadershipFreak)
• Japanese Toilet Industry Agrees to Standardize Complex Bidet Controls. (TheVerge)

 

 

Trading Links:

• What Does the World Expect of a Trump Presidency? (The Conversation)
• The SEC's Reaction to High Frequency Trading. (QuantNews)
• US Jobless Claims down to 1970S Levels at 234,000 - about as Good as It Gets. (Forbes)
• SpaceX’s Leaked Finances Show Elon Musk is Betting Big on Satellite Internet. (Quartz)
• Fed's Yellen Says She's Upbeat about Short-term Economic Outlook. (Reuters)

Do We Still Need Humans?

In my office, we use a lot of what seems like "futuristic" artificial intelligence approaches to understanding financial markets. Most of my team are technical or data-science specialists that develop and drive the systems that create our systems. 

Pretty soon, we may start to question where using humans is still smart or cost-effective. 

In the meantime, I'm fascinated by what is becoming possible ... and how, even when the A.I. is little more than an elegant use of brute force, incredible results are becoming commonplace.

MIT has been looking at work by many different organizations - including Google Brain - who are working on AI that can develop machine learning software. 

In many cases, the results coming from machines coding other machines are matching or exceeding work done by humans. 

 As a point of reference, virtually all of our training techniques were developed or created by an A.I. process.

AI creating AI has many benefits.

But, at this point in time, it still requires lots of human input and insight. 

I suspect that won't be true for long.

  When that is true, what jobs will humans be doing?

 I have some thoughts, but I'd love to hear yours.