@KD and everyone else:

I have yet to see anyone on this blog explain exactly what these algorithms are actually doing.

reply:
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Have you thought of using Google to look it up? Themis Trading has a lot of material, some of it is complicated. zerohedge write about it frequently.

INTC was saying in their call that a lot of equipment is at least four years old so there is a lot of pent up demand. Companies are clearly too afraid to spend right now with such a murky horizon but that will be a benefit sometime in the future

Another point about trading against computers. I’m wondering if this may not be easier to trade against than people. If you think about video games is it easier to play against the computer or another player? It is clearly easier to play against a computer because a computer can’t ’see’ what you are doing the same way a human being can therefore it should theoretically be easier to trade. The trick I suppose is being able to figure out the ‘algos’ cheats, tendencies and weaknesses. I can see how computer against computer may not be a effective and human against computer because humans can see in a much more comprehensive, instinctual way

Adaptability should work in the favor of the human brain over the computer I would think. It should at least put you ‘behind’ other traders in that you would end up using them as shields for the computers to snack on while you get what you want done

Re Bees: Bees are apparently responsible for 1/3 the crops out there. They matter to us but we could survive without them. I think our food choices would be like going from color TV back to B&W though. Thanks Bees!

Re: “next big thing”

I’m looking for that too my friend…My GUT tells me it’s going to be ENERGY related (perhaps not solar or wind, but WASTE related)…I think any investment there needs to be willing to LOSE 100% though…

“Echo boom”???…I understand the concept, but I’m dubious about the reality…

It’s like CARS…everybody needs a new car every 3 years UNTIL THEY DON”T…when they realize they can make do with their old jalopy in tough times, then they change…Moreover, when their NEIGHBORS see that they don’t have a new Escalade in the driveway, they don’t bother either…We haven’t even BEGUN to see that phenomenon yet…

Yet from an “equity” perspective, that’s where the last HOPE of cash is still teetering…

FWIW – I’m actually using it as an indicator…When the TECH investment finally unravels, I’ll start to be convinced that the downturn is reaching a climax…

When in doubt…”cooler” trumps anything (so I can understand)…

Man…if I were in PS, I’d SERIOUSLY look into the idea of being able to excavate down (underground), and create a “cooler” atmosphere…

but that’s just me…

Actually, for me the TARP stuff is still sufficiently mystical that I’d like to hear what you would have said to your uncle.

I have been hearing people tell me that the fact the banks are paying back the TARP is a sign that things are on the rebound. I’m not convinced, but I can’t really argue the case convincingly.

And, I must say, as a poster child for the Johnny Retails of the world, the commentary from you, LB, Andy T, cvienne, manhattanguy, I-man, Karen, et al (at least I’m not like Hillary Swank and forgetting my spouse), makes this my favorite finance blog by far.

I’m pretty much in cash now, switched my 401k to cash and an individually-directed element that is in cash. I’ve missed about 15% return in this latest rally as a consequence, but I don’t feel bad about it (yet). As I’ve said before, the friggin EMH has cost me more money than anything.

I did want to share one observation about tech — I work in tech, so I am biased. But there is a bit of a “floor” under some of the tech business, and that is an “echo boom” of the Y2K stuff. People bought a whole lot of equipment pre-Y2K, and that is now getting to the point where it really needs to be replaced. You can’t run mission-critical business processes on obsolete equipment, or at least you shouldn’t, so that is propping up demand to some extent I think.

Now, what that has to do with the stock prices is a whole other story, and I’m sounding like a fundy, so I hope that’s not too gauche .

I also believe that we will see something within the next 2 years that will be the “next big thing” in tech. I don’t know what the heck that might be, and it very well could still be something “already discovered” like VMW, but I think we’re due.

Amidst all the banter this afternoon (about Vancouver sunsets and computer algos), I was keeping my EYE ON THE PRIZE…

I couldn’t help notice that the S&P hit its 233 day EMA at around 12:30 (whereby cvienne went SHORT)…

So if Bill Miller (who was quoted today as saying “stocks are a bargain”) wants to trade against me then let the ball licking begin…

My caveat is ONLY as follows…”Show me the earnings”…

So great…if the S&P wants to continue to trade at P/E’s that make the likes of Steve Barry roll over…then FINE…Bill Miller is a genius…

But TODAY…officially…we reached our “event horizon” of lunacy…

somehow…I suppose…we need to get into the FLYING CARPET thing…

Fly the damn thing home dammit and forget about the weight, & thinking of it as baggage…

Funny you should mention that (carpets)…In my house, I’m going to need a whole new set of them (as time goes by), but I just installed some sunken heartpine flooring…I’m thinking it’s going to take about two years for the ambient sunlight to AGE them adequately in a way that they darken uniformly…There4, I don’t want to toss carpets over the top just yet for reasons you might imagine…