Sunday, March 14, 2010

It's a quants world...

Quants are the generic term given to the traders using computer models to buy and sell sectors of the market in rapid fire succession. The power of quants in the market has been growing over the past couple of years but their dominance now is truly stunning.

Without getting into the gory details, consider the action in one particular stock last week that announced disastrous earnings that in the good old days would have hammered a stock down 10-20% in a single day. However, when the stock opened the next day it proceeded to march upward with the rest of the market just like nothing had happened.

For a fundamental analyst like myself this is painful to watch.

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Crazy news of the weekend --- Did the CIA conduct LSD tests on the NYC subway system in the 1950s? -- One caveat consider that the source is the NY Post :)

Stat of the Weekend - Flagstaff, AZ with 138 inches of snow so far this year has had more snow than Buffalo, NY and Anchorage, AK combined. Another caveat - Anchorage usually only gets about 50" of snow/year, Buffalo only averages around 100" season despite their reputation for huge snow totals and Flagstaff gets a fair amount of snow every year because of it's elevation.

Cheers!

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