Trader’s Narrative

Being in the battered autoparts sector, it wasn’t really a surprise when Borg Warner announced a downward adjustment in their future business expectations and adjusted to it by announcing that they would trim 13% of their workforce. The market reacted by opening their stock 6% below its previous close.

The first candle was wide range and […]

Amaranth Advisor’s spectacular implosion has been all over the major newspapers, business tv and countless blogs so I won’t rehash the story of how a supposedly ‘hedged’ fund made a tragic bet on natural gas and kept doubling down. We’ve all seen this classic pattern accompany each and every historic blow-up.
But for me the most […]

The private and reclusive Jim Simons (the founder and head of Renaissance Technologies) wants to improve the math skills of American kids. To that end he’s started a foundation called Math for America and pledged $50 million of his own money (loose change for Simons). The purpose of the program is to financially motivate top […]

I’ve talked about this before so I won’t rehash it. When you’re met with unusual and fast market conditions you have to either step aside or adapt by drilling down to a smaller time frame to watch for potential entries.
Either a one minute or two minute interval would have worked as YHOO imploded today:

The New Yorker magazine has a fascinating article about the burgeoning field of neuroeconomics. As the name implies it is the convergence of neuroscience and economics. This new field doesn’t pretend to nullify the foundation of traditional economics so much as introduce whole new ranges of variables (such as biological and chemical) which affect our […]