On CNBC Europe there was this guy from Saxobank who talked about how the models of today are illustrating that computers will yet again fail. He was saying how good traders will save the day. I replied as follows: > I am following the algorithmic trading talk and the Saxobank guy is dead wrong. The...

...the next low (read: the next support level) is 1222 of June 13th, 2006. (!!!) We appear to have bounced back off that level, but that support level is not holding strongly. Don't be suprised if it falls over. Countrywide is all but gone. That is the last of the non-bank lenders. What is even...

I find it amazing that with a 10% drop in the market reached it is now time to buy? Why? Because P/E ratios are good? Because cash flow is good? The economy is still good and strong right? And therefore there is no recession? It's a time to buy right? After all it seems all the professional traders...

Today on CNBC American Squawk box I heard one of the most straight talking individuals I have listened to in a long while. The panel was Steve Forbes, and a woman called Janet Tavakoli, and they were talking about Quant funds and their models. Janet's comment regarding quant model's was, and I...

Many, including myself are wondering who is responsible for this mess. Many point at Greenspan, but I think it is not so black and white. One problem that we have is that people don't understand the mathematics and dynamics of mortgages. I even get the feeling that mortgage lenders are pretty...

The market is in turmoil and BNP is complaining about liquidity issues. I went back to look at an interview from Scholes (author of Black-Scholes pricing) for an opinion on the situation. > As a result, "decision time becomes elongated" and speculators hold back their capital just when their...

At iTulip they had an interesting posting regarding the currency markets. > "We are fast reaching a stage at which elegant quantitative models won’t determine who survives, in fact, those that tend to rely on models in this environment may be most likely to be shining shoes sooner rather than...

I'm in a funk. You ever get to that place where you want to reverse every one of your trade ideas? I'm there now. I sell GRMN at $81 and it goes to $103. I buy BBBY for some reason at $36 and it goes low. Then I watch it bounce, set a stop loss that gets hit at $34.74, and watch it have a nice up...

I was puzzling and thinking if I were Bernake what would I do? Many are crying raise the darn interest rates. Many are saying lower to give the companies a break. Bernake though does not strike me as an individual that leaves a statement. He strikes me as an individual that tries to do the right...

Fingers crossed. He should moderate his language, open the possibility of a rate cut, and send the markets higher. I hope he keeps his mouth closed, talks about inflation and the US dollar, and keeps rates right where they are. Wishful thinking? Perhaps. However, I just have a vibe that he isn't...