Feb
4
Some Odd Consiliences, from Victor Niederhoffer
February 4, 2014 |
One notes that music on the radio often coincides in tempo and volume with the market movements. That's because of changing stations at the hour. Certain music mirrors the market. The funeral march or the second movement of the Third Symphony is always playing when one is about to be sent to Davey Jones's Locker. That's because one's colleagues put that music on when the reaper appears.
My dentist asks me to let him know in advance when I have an appointment because the market always goes way down on the day of the appointment and he'd like to sell short. The reason is that I see him on Mondays. I make the appointment after a lull in the market. But the market reverses. So after it's up and I make an appointment it's likely to have a day like yest.
A little woman was known to have romance with a poor speculator. She says, "are you sure we can afford it? We always lose when you are indulged." The reason is that one requests the possibility on those rare occasions when the market has not had a big down day in a few months. That's always the time for it to stick in the big decline.
One occasionally attends to the necessaries in the chamber. The market is always likely to drop 7 figures against you during that time. The reason is you choose the relaxed moment. Always expect an ambush from the Apaches when you would never expect it.
Certain hoodoos always call asking for money when the market is in a terrible tailspin. They need money badly during that time. Other people do also. The lack of liquidity causes them to ask for money and also causes the market decline.
One never makes money in the evening the same way. The market knows you can't stay up 48 hours straight. Only 24 hours. By the time Europe has digested yesterdays' move, they can consult with the other centrals and take corrective action.
A vacation is always the time for a drastic reversal in your fortune your appointments during market hours will always have to be canceled because it will turn way against you. Same reason as above.
Whenever you have a big positions, the headlines on the tv and screen will have a story drastically against you. The news follows the price. Your brother or you will always have either the best or worst year. The principle of ever changing cycles.
What other unusual consiliences that really are due to logic and probabilities illuminate and enliven your market days?
A brother writes:
Good hypotheses possess four qualities:
1) Falsifiable (can be easily proved wrong)
2) Causal (if possible there should be a reasonable causal link between independent and dependent variable)
3) Parsimonious (few variables)
4) Robust (as broad as possible)
It would be interesting to rate your many hypotheses above on these characteristics.
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