This page has been archived and commenting is disabled.
VWAP Reversion Is Back - Right On Cue
»
- 2674 reads
- Printer-friendly version
- Send to friend
- advertisements -
Contact Information:
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. Here's our Cookie Policy.
Disagree.
Stupid people
Stupid does...what STUPID IS TOLD TO DO.
So..who is the stupid one?
Yes, stupid robot, but maybe that's because you've got a a REEM-A model which needs a good bitch slapping. REEM-B has been out for a while.
Isn't closing near VWAP of a stock an indication of lack of institutional activity, as a broker with a large institutional (buy) order throughout the day has an incentive to juice the close way above VWAP to make him look good?!
Baltar, to Cylon1: "When can one side go back on an agreement made with the other side?"
Cylon1: "When there IS no other side..."
Stupid robots...
To the person who flagged the BatGalact quote as junk, I apologize.
It was meant to be more serious than mere junk.
CW
For those of who dont quite understand the implication or the mechanics of this, would someone mind giving a quick explanation?
thanks in advance.
http://www.zerohedge.com/taxonomy_vtn/term/184
FAQ on VWAP http://www.tradetrek.com/faqs/q22.asp
There's a bunch of robots out there trading the markets based on this. They've basically pumped it full of air since SP 800.
I would only go long for a day trade anymore, and I'm going to wait to re-short until this looks really, really 'toppy'. As in, "this is so toppy it's beyond stupid".
Thanks for that. Maybe Zero Hedge could add a glossary to help us stupid people understand these things better.
- Dr. Seuss, Hand, Hand, Fingers, Thumb
Hand, hand, fingers, thumb
one thumb, one thumb, drumming on a drum
dum ditty, dum ditty, dum dum dum
hand in hand more monkeys come
monkeys hum and monkeys drum
hum drum, hum drum, hum drum hum...
Can that thing change my depends?
http://www.marketwatch.com/story/us-regulators-seen-moving-to-ban-dark-f...
Place Your Bets! Looks like GS lobbyists are going to be in for a long night.
Rahm , get on the phone!
Of more concern is that Direct Edge has applied to the SEC for "exchange status".
why? you look so good in your depends...
When the robots are done feeding on shorts, they will feed on each other.
http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=a30c2b34-73...
Was the Redbook even reported today??
Does anyone know if Goldman is funding this project because it's just a matter of time if they aren't. What's to stop them; think of the economic implications with crops.
http://www.youtube.com/watch?v=dSCLBG9KeX4&feature=related
Fucking robots
Volume Weighted Average Price (VWAP) = Sum of (Number of Shares Bought x Share Price) / Total Number Shares Bought
i.e. the average price a share is bought throughout a given period.
Here is what I am confused about:
Mathematically, since the VWAP is correlated to the total number of shares bought, if we are in a low trading day (are we?) and volumes increase at the end of the trading day (have they?) can't the actual price of a share reach closer to the VWAP without foul play?
Stupid robots indeed. Once again my short profits ruined at the end of the day. Now idiots will say, oh the market seems well supported and we'll start the upward momentum clusterfuck once again.
Tyler - would be interesting to see some trimtab data here because if people are still plowing money into the their 401k's then the mutual fund ponzi scheme continues and the market goes up with any sort of momentum given that the sheep at Fidelity just follow the flow.
Oh and are you kidding me with the captcha, -14 + x = -47. Why do you make me work?
EVERY EFFING DAY IS THE SAME RESULT...the NAZ IS UP 14 out of 15 days and up almost 15% in that span. ITS LIKE FRIGGIN GROUNDHOG DAY OVER AND OVER AGAIN...this is nuts! Even my retarded friend who cant make any money is making a ton nowadays
That's the idea: your friend is supposed to tell as many people who will listen that the game is back on and all is well in the market. Afterall, IT's GOING UP and CNBC says the recession is over. Our whole economy is based on continuosly trying to pump everything up. In fact, the bigger the piece of shit something is the louder the buy drum gets.
When this rally dies (hopefully before I do) it's gonna get Ugly.
I hear that. One of my bulltard 401k friends was telling me yesterday "omg, i'm just 2% away from being even for the year!"
Apparently trying to point out to him the absurdity of this move means I'm just a "jealous bear".
First, tell him the market doesn't care if he's close to even or not.
Second, ask him how far he is from "being even" for last year or the year before.
Who cares. Some other spin will be used. The market is going to 10 or 11K on the Dow at this point. An entire blog and research paper dedicated to calling the BS in the markets....hmmmm all of this effort and no investing Tyler? Come on, even you are joining in the "surge" upward and pulling in some returns. At least be honest about it.
Who cares? The idea of sharing info on a blog like this is so people can see the "pot holes" on the road that is the market and take it for what it's worth. I could watch Bob Pissonme on CNBC tell why everything is great, even when it isn't.
But I guess that doesn't matter because the Dow is going up another 10%. Or is it 20%, whatever, doesn't matter. Right? Just get in and buy.
Same poster as the original. I want to know if Tyler and Co. are actually particicapting on the ride up right now or are they sitting out. With Sprott and Rosie, we at least know their position. Sprott pretty much owns the canadian gold market. His report pump his positions. What position does Tyler have right now? Are you trading in the upswings? Are you sitting out and in cash? are you in Gold? Its one thing to organize a blog with an anonymity. I can respect that, but what if you just manipulting the masses here for your own positional gain? What's the position stance Tyler, be honest.
A non answer is a chicken shit answer. You are organizing this. We should know your position.
Tyler just told me to tell you that he's shorting the hell out of chicken shit and since you insist... he prefers doggie-style!
The giant bloodsucking vampire squid raises its ugly head...
Best regards to Lloyd Blankfein & Co.
It was predicted right here MANY MONTHS ago that ZH would not make you a dime.
This has panned out as quite accurate.
In fact, ZH has no doubt cost folks in the aggregate, many millions of American Dollars. Who could possibly be LONG after reading these diatribes. Not to mention the failed short sales.
There's plenty here for amusement, but very little that will make you a penny.
I don't know about many millions but...
I am amazed that people read shit on the internet, regardless of how good or bad it is and make a trade/investment decision. What's their entry point??? Time read plus 15 minutes??? A fool and his money....
If TD's (or anyone else's) position would affect your trading then you shouldn't be trading. Take the blog for what it's worth, if some of the stuff is useless to you then don't use it.
The way I see it TD could be an Uber Bear and wants to promote doom and gloom. OR he's an Uber Bull and he wants to either keep everyone out of his party or he wants you to short all the time so you can get squeezed.
Mom: Don't you know how risky that is? You could lose all your money! That Dennis fellow has too much influence over you.
Kid: Well, gee Mom - Being a bull is cool. Everyone's doing it. And I've made these swell profits!
Mom: If he told you to jump off a building, would you do it?
Kid: Which building?
Mom: 85 Broad.
Never fails, we get into a W4 day and this blog plays the VWAP card. It's a consolidation, triangle, w4, going up from here, OMG get over it. Stupid robots? Whatever.
I've never seen one explanation for these VWAP posts. Just lots of pointing at the convergence/divergence from VWAP and the implication that it proves something nefarious.
An embarrassment at best.
Agree it's a complete lack of understanding about anything. So stocks are dragged towards the VWAP big deal, that means nothing, they were dragged towards the VWAP on the downside on the down days in the early part of the month.