Structural Collapse

Quote from GermanTrader:

No. Systems that worked before may not work now. New systems are needed for these new behaviors. That new system will not work should the old behaviors return, any more than the old system works today.

Shh. only 1 in 1000 have figured that out.

Perhaps you might like to suggest backtesting even MORE data to improve accuracy? (snicker)
 
no way! :) at least there are a few other asset classes which will continue to work as before - the commodities, forex.....and if this is a temporary ban the markets should get back to normal trading when it is lifted.....
 
Quote from dima777:

Hi!
Can it be that the ban on short-selling in USA and UK will bring about a massive rearrangement in market dynamics that can destroy the effectiveness of many technical trading systems which have been successful so far? What do you think?
Dima
This spells the end to technical analysis as we know it. And the market will only go up from now on for ever. The Chinese markets don't allow shorting and that market never goes down. :D
Just kidding this has had no effect on how I look at the markets. I just go along with it and make money.
 
Banks, investment houses, etc. have lost trillions in the derivatives market. Those losses per the legislation are not required to be reported on their financial balance sheets. So, no one even know just how big these losses really are. But according to industry insiders the losses are unbelievable huge.

There is an estimated 965 trillion dollars in the derivatives market. The only way they're going to recoup enough money is turn the spigots on at the FED and also bump up the DOW to 19,000 to sell it off down to 300, profiting on the long and short ends.

Once they've exhausted every pension fund in the land they'll start taxing everyone at 83% rates and taking possession of homes, cars and any asset which can be sold (for pennies on the dollar) to the Chinese.

It's just like it was in the Roman days.
 
Quote from amanda33:

Banks, investment houses, etc. have lost trillions in the derivatives market. Those losses per the legislation are not required to be reported on their financial balance sheets. So, no one even know just how big these losses really are. But according to industry insiders the losses are unbelievable huge.

There is an estimated 965 trillion dollars in the derivatives market. The only way they're going to recoup enough money is turn the spigots on at the FED and also bump up the DOW to 19,000 to sell it off down to 300, profiting on the long and short ends.

Once they've exhausted every pension fund in the land they'll start taxing everyone at 83% rates and taking possession of homes, cars and any asset which can be sold (for pennies on the dollar) to the Chinese.

It's just like it was in the Roman days.

that's pretty grim scenario....I do hope we get back to normal soon - the short-selling will be allowed and the funds will start trading as they did in the old days...:)
 
Im begining to think we would be better off if we encoraged all these jokes of major financial insitutions to go bankrupt. Let the bankruptcy court resolve the 900 billion err.. Trillion in derivatives while all the counterparties and participants are at the same court.
 
everyone knows who made the big losses , but who are the guys on the winning side?

I mean derivatives or not - 0 sum game right ? so someone has got to be a big winner in all of this .

My guess - shareholders of the Fed : JPChase, Rothchilds etc , who have been conspicuously quite.

Any other suggestions guys ?
 
Quote from Streetwise:

everyone knows who made the big losses , but who are the guys on the winning side?

I mean derivatives or not - 0 sum game right ? so someone has got to be a big winner in all of this .

My guess - shareholders of the Fed : JPChase, Rothchilds etc , who have been conspicuously quite.

Any other suggestions guys ?

here is an article which says something definite about the actual beneficiaries from this turmoil:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/19/cchedgefunds119.xml

note the helplessly admonishing tone of the report..:)
 
remember its only financial stocks. all others are fair game and the technicals will still work. that said,i noticed some of the financials worked well on buy on dip area of intraday support so technicals still work there.
 
Quote from dima777:

I paraphrased it into a question. My thoughts are that the usual technical patterns that the systems exploit are the product of the BALANCED interplay of the forces of supply and demand on the markets....this balance will be shifted towards the buying public if the ban stays - causing the disbalance which will ultimately mutate the way the technical patterns look and form...:(
What about enforcing laws against naked shorting, any disruption?
 
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