Daily Report

The Machine:

Summary Version 8.2
Date: 2007-11-09 Time: 03:00
CY: WAIT
SAY: WAIT
This information does not constitute
financial advice of any kind.
Have a nice day!

The stock market strikes back

The Man:

It's no surprise that the stock market is sliding south. The recent market drops to me signal the extreme pessimism of the market. This is due to the low interest rates leading to a record rise in gold prices and the drop in value for the U.S. Dollar. A "crash" seems to be looming, however I doubt anything like that will occur in just one day. The markets are rigged in such a way that after a certain amount of points above or below the previous day's close, computer trading is halted, and trades are run by humans only. This is a stop gap measure that keeps stocks from declining more than 3% per day. This is because my guess is that with human market makers as the go between, only a fraction of volume can be traded, and just rates of trade, you can only let so much money out of the market.. By cutting electronic trading, the markets effectively slow down, and keep the absolute point loss to a minimum. This is pretty smart, because although liquidity is effectively thickened to cold maple syrup, the markets themselves do not officially close. This keeps panic from occuring. This only works though, if you are looking to limit the sellers near to the number of buyers. If prices go down 300+ points a day for 5 days in a row, then the real crash will occur.

I'm currently working on another essay detailing the philosophy behind the design of my algorithm. I hope to publish it soon!

More later.

Daily Report

The Machine:

Summary Version 8.2
Date: 2007-11-08 Time: 03:00
CY: WAIT
SAY: WAIT
This information does not constitute
financial advice of any kind.
Have a nice day!

Daily Report

The Machine:

Summary Version 8.2
Date: 2007-11-07 Time: 03:00
CY: WAIT
SAY: WAIT
This information does not constitute
financial advice of any kind.
Have a nice day!

Daily Report

The Machine:

Summary Version 8.2
Date: 2007-11-06 Time: 03:00
CY: WAIT
SAY: WAIT
This information does not constitute
financial advice of any kind.
Have a nice day!

Daily Report

The Machine:

SAY Price: 30.165
Decision:SELL

Summary Version 8.2
Date: 2007-11-05 Time: 03:00
CY: WAIT
SAY: SELL
This information does not constitute
financial advice of any kind.
Have a nice day!

Version 8.2 rollout!

The Man:
I am currently backtesting the code for The Machine's upgrade to version 8.2. Unfortunately the update is much more computationally intensive, and it's taking much longer than I've expected. Hopefully the algorithm will converge sooner rather than later.

I've also added an essay to the brick and mortar website:

http://www.wcoretech.com/

Any comments are encouraged... The essay portions are meant as a dialogue between myself and you, the community!

Weekly Market Commentary

The Man:

This past week marked an interesting turnaround in the interest rate situation. The Market, though up, rose on light trading on the day of the Fed's rate cut, and the momentum was not carried through to the end of the week. Given that the dollar vs the world dropped sharply and comoditities rose (most notably oil and gold), it is an abvious signal to you and me that the US treasury is tapped out.

There's no longer any true "slack" in the system to be exploited. I believe that the U.S. has very little options at the moment in order to improve the economy. The world markets will simply not tolerate another dilutionary action by the Fed. If they do, then they are essentially giving away capital to the U.S. Treasury. They will eventually have to devalue their own currencies in order to make sure they don't get their U.S. Bond payments in the form of inflated, diluted pennies.

The ultracapitalist society that we've been subjected to since the 90's is coming home to roost in the pockets of us Americans. No savings, no house, no small business... We've been reduced to innovationless couch potatos eagerly anticipating the next DVD release of the summer's blockbuster hits! (By the way, I can't WAIT until Shrek III comes out on DVD.)

Where are the innovators that once drove the U.S. economy? Has prosperity truly been our greatest enemy? Will there ever be another DARPA Grand Challenge?

More later...