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Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

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Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

Also, what was interesting was the market bounced off the 100-day SMA after cracking the 50-day SMA and triggering the sell-off. I'm guessing that's when institutions started gobbling up the deep discounts. Cripes, my company was off about 8.5% today. I fired up my brokerage account to get in on it and buy, but the buy backs happened far too fast.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
Also, what was interesting was the market bounced off the 100-day SMA after cracking the 50-day SMA and triggering the sell-off. I'm guessing that's when institutions started gobbling up the deep discounts. Cripes, my company was off about 8.5% today. I fired up my brokerage account to get in on it and buy, but the buy backs happened far too fast.
Click to expand...

Hence why I use limit triggers set for GTC. ;)
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
That is so fundamentally misleading it makes me wonder if you understand the basics. The idea of DCAing is that you don't have a lump sum to invest all at one time. You can't take your entire annual 401(k) contribution and invest it over one day.
Click to expand...

I'm fairly convinced, by now, Scooby is just trolling.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
This isn't a flash crash. The flash crash was caused by a fat fingered or manipulative trade. I tuned to CNBC and MSNBC and they've called the NYSE and other exchanges and they have absolutely no evidence of this being a fat-fingered trade.

ETA: This is likely a result of the automated trading age we're in. WHen you cross markers like the 50-day SMA, you start to trigger the first large wave of computer-generated trades selling. Every step you take generates more. Eventually this snowballs until an actual human grabs the controls again, takes off autopilot, and that's why you saw the bounceback. People saw the stock market pulling a Menards 11% rebate on everything sale and they cashed in.
Click to expand...

Automated trading explains the volume and resultant volatility, but it doesn't explain the original sell-off to trigger all of this, which is where, if you're really concerned about who's to blame, the investigation should happen.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
That is so fundamentally misleading it makes me wonder if you understand the basics. The idea of DCAing is that you don't have a lump sum to invest all at one time. You can't take your entire annual 401(k) contribution and invest it over one day.
Click to expand...

I understand that's how most of us have to invest. I get it. But, anyone who thinks it offers any sort of advantage is delusional. I know who or what has the advantage and it's not average investors and it's not dollar cost averaging. Dollar Cost Averaging is a sucker ploy to get people to invest their money in the market as the great retirement engine. Which right now is true because all other retirement vehicles have been destroyed by the Stock Market lobby.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
Also, what was interesting was the market bounced off the 100-day SMA after cracking the 50-day SMA and triggering the sell-off. I'm guessing that's when institutions started gobbling up the deep discounts. Cripes, my company was off about 8.5% today. I fired up my brokerage account to get in on it and buy, but the buy backs happened far too fast.
Click to expand...

Just another example of how the stock market works for the few and not the many.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
Also, what was interesting was the market bounced off the 100-day SMA after cracking the 50-day SMA and triggering the sell-off. I'm guessing that's when institutions started gobbling up the deep discounts. Cripes, my company was off about 8.5% today. I fired up my brokerage account to get in on it and buy, but the buy backs happened far too fast.
Click to expand...

The machines, program trading, will always beat you. Why? They know and act as it happens. (There's probably a good Terminator/SkyNet reference in there.)
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

ScoobyDoo said:
I understand that's how most of us have to invest. I get it. But, anyone who thinks it offers any sort of advantage is delusional. I know who or what has the advantage and it's not average investors and it's not dollar cost averaging. Dollar Cost Averaging is a sucker ploy to get people to invest their money in the market as the great retirement engine. Which right now is true because all other retirement vehicles have been destroyed by the Stock Market lobby.
Click to expand...

Again, the market is historically the best retirement engine we've ever created. There's a reason Warren Buffet has never had to pay out on his million-dollar hedge fund bet and why he said his wife should put her retirement into the market after he kicks off. The S&P 500 has only been down over a ten-year period a handful of times. Since 1950 it's basically happened twice: The great recession (where the losses relatively quickly rebounded) and in the 1970s it happened twice. It has not had negative annualized returns over a 15-year period since at least 1950. That's the furthest I could go back on short notice.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

Dow26.6k on 1/26 to Dow24.3k today. Down about 8.5%. Sounds like the correction that is bound to come.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

The Sicatoka said:
Simple moving average. That's what the cool kids like dxmn call it. I just call it the moving average.
Click to expand...

I've never liked 50 and 200, though. I find the Fibonacci numbers to be much more tangential. 55, 89, 144, 233.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

The Sicatoka said:
The machines, program trading, will always beat you. Why? They know and act as it happens. (There's probably a good Terminator/SkyNet reference in there.)
Click to expand...

There are machines that can actually make trades faster than the market can react. They'll jump in line to skim a penny of millions of shares at a time. I haven't kept up on the legalities of this kind of high-frequency trading, but I'm guessing there are now limits in place to prevent that.

It's why I don't play day-trader unless I know something is awry.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

The Sicatoka said:
Simple moving average. That's what the cool kids like dxmn call it. I just call it the moving average.
Click to expand...

Or... It's 86% fewer characters than in 'simple moving average' and I prefer typing SMA than the whole thing.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
There are machines that can actually make trades faster than the market can react. They'll jump in line to skim a penny of millions of shares at a time. I haven't kept up on the legalities of this kind of high-frequency trading, but I'm guessing there are now limits in place to prevent that.

It's why I don't play day-trader unless I know something is awry.
Click to expand...

There really isn't anything illegal about high frequency trading, but it usually does become subject to withholding requirements for tax purposes.
 
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