Quantitative versus Fundamental Investing

Source: Quantitative versus Fundamental Value

Inflation Explained

PIIGS ? suck! suck! suck!

Source: Investment Postcards

Quantitative Easing Explained

The Whipsaw Song

by Ed Seykota

Day trading or Night trading? :)

Source: Frank & Ernest

Black Swan vs Black Duck

“The trouble with the Recency Effect is that everyone all of a sudden thought they were Nassim Taleb, orinthological experts on the spotting of Black Swans. Every blip on the screen or blurb in the newspaper was fresh evidence of the next hundred years’ storm. Forget being fooled by randomness, people have become obsessed with randomness.

But as we’ve learned, not every aberration is a Black Swan in the making. Sometimes, it’s just an ordinary Black Duck. A negative event or possibility that is processed and dealt with, that doesn’t necessarily lead to contagion, panic and meltdown.”

Source: The Reformed Broker - Sometimes It’s Just a Black Duck

The Dollar

Dollar! Dollar! burning bright

In the markets of the night

What subtle hand has bolstered thee

And caused the woeful buck's rally?

In what distant deep or land

Dwells the invisible hand?

Or as Europe sinks in the mire

Have euros been thrown in the fire?

Was it the ifo? GDP?

That caused the euro bulls to see?

Or was it oil? The fall of gold,

That turned the dollar bear trend old?

Who's the hammer? Make it plain,

Behind the rally, who's the brain?

Or is it just the P & L

Of the market, gone to hell?

When the market ran the stops,

And turned the dollar bears to flops,

Did the dollar start to smile,

To see itself now back in style?

Dollar! Dollar! burning bright

In the markets of the night

What subtle hand has bolstered thee

And caused the woeful buck's rally?

Source:

Bank Holiday Poem: The Dollar

The Bear has entered the stage..?!:)

Source:
The Big Picture

A trader's perspective on the world..:)

"..Traders have no choice but to "ignore reality" and go for the ride. A turret-bound buddy wrote me:

"I don't care about the numbers, the economic data, whether Iraq is in a Civil war, if the President gets impeached, who controls congress, what a company does, whether we fall into a recession or if China buys Europe and turns it into a Disney theme park. My world is defined by what I see on my four 20 inch monitors in front of me. Everything else is noise."

That's what is driving the markets."

Source:

Reality Check

The Big Picture

A Story About Trading..:))

"There's a great story about a famous local trader at the Chicago Board of Trade (CBOT). One day, he was on the floor of the CBOT and a U.S. inflation number came out that was totally unexpected. Pure pandemonium ensued. When all the noise died down, he walked out of the pit having made $10 million and said, "By the way, what was the number?"

Source:
Quote of the Week
by TaylorTree

Wondering why GBP is soft..?

Check this out..

"The Office for National Statistics on Wednesday admitted to an error that dramatically reduced the worry over inflation in the economy and makes a further interest rate rise less likely. The ONS slashed its estimate of annual inflation in export prices from 3.8 to 0.6 per cent after it found it had introduced an error into the calculation."

If long GBP..that's a good reason to kill a statistician..:))

Sources:
ERROR MAKES UK RATE RISE LESS LIKELY By Chris Giles, Economics Editor
and FXstreet.com Weblog

Long live the printing machine..:))

Source:

As we wait for the Fed Announcement..

The Big Picture

What's a stock?

Something that is worth $29.95 until the moment you buy it. It will then be worth $9.95.