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Right...benchmarking is a critical part of the analysis. ACD allows one to normalize data and get rid of the noise in the data. Something that is just not possible with standard charting.

I would be careful with this. The number line is not really a measure of how strong or weak a product is but rather a measure of trend. For example, I have two stocks, A and B. A has a +30 number line and B has a +10 number line. The +30 is not necessarily a stronger stock. It merely has...

I think this is going to be a great spreaders market. The market is firming up but there is plenty of stuff going down. Market neutral books can make a killing in the next few months.

Let's just say it's internal data from the sample of 2500 stocks. And it's meaningful. I also think we are going to see some interesting dislocations here so some of the typical market relationships might break down i.e bonds might keep trading higher or oil might go lower with higher equity...

Guys, you might want to think about getting a little bit longer equities. We had a huge internal change today in the market.

It's about 2500 stocks. Takes ACD to a whole new level.

Interesting price action. Too bad the cargo is practically worthless. LOL. But it's a big milestone regardless.

Yeah the easy solution to this is just make your internal breath indicators ACD based which is what I did. Much nicer then the standard normal market breadth stuff.

I was trading that day. Futures dropped a little on the first plane crash then squeezed back pretty hard. The 2nd plane hit about 15 to 20 minutes later. Futures re-tested the lows but it was nothing dramatic. I can't remember the exact time futures ever stopped trading but there have...

Pound crosses continue to get crushed.

Gold....

Not anymore. He hires quants now. That was 30 years ago when guys on the floor of the NYMEX were front running brokers.

You are right, it was a typo. Blame it on the greeks!

The stock rallied 150% and he was short and he wants to know why he lost money? LOL. You might be right. He shouldn't be trading.

Premium is always assumed to be "extrinsic". I had to additionally define "intrinsic" since that was the so-called premium the trader was referring to. Nobody associates in the money premium with premium. If you google the world premium, which I just did for you, you get: "premium...

No, my point is valid. He confused "extrinsic" with "intrinsic". His Extrinsic value IS mostly gone. Not his "intrinsic". LOL. Nobody should be allowed to trade options before they understand this and I'm not a huge regulation guy, but I absolutely support rules to keep that guy from...

I wish you the best of luck. Make sure you have a backup plan career wise. Always the best advice I can give to young people.

Spurious correlation...

Nope. This is what I'm referring to,. Neither of those numbers you provided are meaningful. Risking $1 to make $20 doesn't answer a single question I have about the trade.

Risk is about evaluating the expected value of a trade measured against the opportunity costs of other uses of the capital being used for that trade accounting for time, discount rate and variance of the returns. Are you maximizing the next marginal dollar of risk given all available resources...