Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.

 

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9/9/04
The Sun and Markets by J.T.

(in response to the Chairman's post: "...as should the whole concept of leverage on a position which comes from a nice park display of a seesaw. What is the force that is necessary to raise or lower a market, and how far from the turning point-fulcrum of that market can the force come from? How long and how far does that force have to be applied? Is the relation predictable at certain times the way a balancing and moving of weights and applied distances on opposite sides of a fulcrum can be predicted or is there too much of a stochastic element involved in these relations?")

That market seesaw it seems right now is as perfectly horizontal as the setting suns horizon. Of course the sun is that seesaw fulcrum! I thought of this and Vic's metaphor and thought of the forces necessary to raise "bids" or lower "asks" mkt. and then thought of an airplane wing and how its designs helps big massive amounts of metal glide upwards using the force of air upon it to lift it. I smile when I think of that wonderful drift that the Mistress seems to give us historically, and think of those times when my tail is on the ground with the fulcrum and the other passenger on the seesaw higher above me laughing as I am below, but the market and the seesaw properly adjusts and it and I rise again as the fulcrum and those permabears/bloggers/told-ya-so's go down. The wing, the seesaw, the drift, the sun setting who needs anything to start but your own eyes and ears to become a great speculator! Thank you ladies and gentleman, Thank You. "I once was blind but now I see"