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The "Damped Harmonic Oscillator" Algo Exorcism Of Fannie Mae

Submitted by Tyler Durden on 05/29/2013 20:33 -0400

Spot the difference - one of these charts is an algorthmically-controlled oscillation and the other is... hhmm

Happy "Trading"...

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Wed, 05/29/2013 - 20:34 | 3608978 reTARD

Pretty computer-generated artwork.

Wed, 05/29/2013 - 20:38 | 3608987 Herd Redirectio...

SKYNET!

Wed, 05/29/2013 - 20:42 | 3609000 Bizaro World

That's just normal mom and pop investors discovering the true price of an asset.....oh, that can happen within milliseconds these day?...mom and pop must have upgraded to the latest iPad... /sarc

Wed, 05/29/2013 - 20:45 | 3609007 flacon

Here's what it looked like on my platform:

http://img854.imageshack.us/img854/7977/fnma.png

Wed, 05/29/2013 - 20:47 | 3609018 ACP

I'm surprised ZH didn't reference this older article:

http://www.zerohedge.com/article/story-berserk-nat-gas-algo-just-got-rea...

Same algo?

Wed, 05/29/2013 - 20:54 | 3609038 Herd Redirectio...

Its like 'they' literally said "Take Fannie down to $2.90. Make it look natural"

So the algo has to send the stock up first, to somehow make the 'action' more believable! And to make sure no shorts with a stop in place made any money, of course!

Wed, 05/29/2013 - 20:54 | 3609039 ParkAveFlasher

Good show, Tylers!!!!!! Looks like they are using simple waveform m3chanics such as one kind find in audio software. Zeee Germans?

Thu, 05/30/2013 - 08:45 | 3609939 El Viejo

Every good engineer knows that too much Gain (Kp or P) causes an oscillation. For you musicians it's called feedback. The house never loses.

http://en.wikipedia.org/wiki/PID_controller

Gee I wonder if it's intentional?

Wed, 05/29/2013 - 21:00 | 3609063 SafelyGraze

looks like two separate algorithms

checking each other out

negotiating

Wed, 05/29/2013 - 21:09 | 3609081 ZerOhead

It looks like the acoustic waves generated on an oscilliscope when a bell is rung.

GONNNNNNNNG....

I wonder who it's tolling for?...

Wed, 05/29/2013 - 21:17 | 3609104 juangrande

Not to be prissy, but I think the term is dampened.

Wed, 05/29/2013 - 21:25 | 3609119 ACP

Damped is a term used in physics; it's correct.

Wed, 05/29/2013 - 20:42 | 3609001 reTARD

Orgasmic?

Wed, 05/29/2013 - 21:01 | 3609069 ZerOhead

What's the matter with you boy... can't you read?

The answer is obviously 'UNDERDAMPED'... whatever that means...

Wed, 05/29/2013 - 21:04 | 3609078 reTARD

Post-orgasmic, after climax?

Wed, 05/29/2013 - 21:10 | 3609084 ZerOhead

Okay... that makes sense. Provided it was a quickie there may not be any dampness generated...henced UNDERDAMPED..

Wed, 05/29/2013 - 21:10 | 3609093 reTARD

It sure was a quickie, LOL!

Wed, 05/29/2013 - 20:42 | 3609002 The Thunder Child

Disengage internal dampeners

Thu, 05/30/2013 - 04:13 | 3609649 Wile-E-Coyote

Looks like someone flicking a PID (proportional, Integral, Derivative) controller on and off until they got bored.

Wed, 05/29/2013 - 20:36 | 3608981 IndicaTive

Damp it to hell.

Wed, 05/29/2013 - 20:40 | 3608992 PiltdownMan

Interesting. Hadn't thought of it this way. Good job!

Wed, 05/29/2013 - 20:40 | 3608995 Seize Mars

Damped harmonic oscillator. Fuck I just had a PTSD flashback to undergraduate days. Holy crap what a nightmare. Frankie Goes to Hollywood, and...Merlot. Ugh.

Wed, 05/29/2013 - 20:50 | 3609027 flacon

Relax! Don't do it!

Wed, 05/29/2013 - 22:28 | 3609250 DaddyO

More like MD 20/20, Merlot was for the frat boys...

DaddyO

Thu, 05/30/2013 - 07:01 | 3609750 MsCreant

Get with the times, butt chugging. Use the white bag, red stains.

You can't spell butt without UT...

Wed, 05/29/2013 - 20:50 | 3609030 thatthingcanfly

Yeah. Holy Differential Equations Flashback, Batman!

Thought this investing stuff was supposed to be easy.

Wed, 05/29/2013 - 20:45 | 3609008 Seize Mars

It's strange how things seem to be different when you're living in a dream.

http://www.youtube.com/watch?v=F0KGF8lg6Dc

Wed, 05/29/2013 - 21:03 | 3609075 Aurora Ex Machina

Bleh, +1 on principle.

A junk for a music video? Barbarians.

Wed, 05/29/2013 - 20:51 | 3609033 Dr. Engali

Nothing to see here. Just efficient markets at work. Move along. Move along.

Wed, 05/29/2013 - 20:56 | 3609049 dracos_ghost

Nothing to see here. Just efficient markets at work.

loop:

Move along. Move along.

goto loop

There fixed it for ya.

Wed, 05/29/2013 - 22:32 | 3609257 DaddyO

The military has HAARP

The ChairSatan has WAARP, guaranteed to oscillate far beyond the closing bell.

DaddyO

Wed, 05/29/2013 - 20:55 | 3609045 The Proletariat

Hey look! A sideways tornado....time to blame the weather

Wed, 05/29/2013 - 20:57 | 3609050 blindman

talk about mud flaps my girl's got em'
( bottom volume )
.
http://www.youtube.com/watch?v=7qDgCmzh5ao
.
what?

Wed, 05/29/2013 - 21:06 | 3609082 ebworthen

Aye - Queen: "Fat Bottomed Girls you make the Rockin' World Go Round"

http://www.youtube.com/watch?v=VMnjF1O4eH0

Wed, 05/29/2013 - 21:33 | 3609138 blindman

Brontosaurus - The Move
http://www.youtube.com/watch?v=MceUNiGb96c

Wed, 05/29/2013 - 20:59 | 3609061 ebworthen

"Out Demon!!! OUT!!!"

Wed, 05/29/2013 - 21:04 | 3609077 1C3-N1N3

y = x * sin x

as x approaches zero from the negative side

Thu, 05/30/2013 - 07:28 | 3609802 timbo_em

I think it's more f(x) = x sin(1/x)

Wed, 05/29/2013 - 21:04 | 3609079 logicalman

I think Chaos Theory is what we should be studying...

Chaos is coming.

Wed, 05/29/2013 - 21:08 | 3609086 pauhana

You can't fool me. The FNMA chart is the free market at work while the other chart is just some silly child doodling - make that diddling.

Wed, 05/29/2013 - 21:08 | 3609088 Big Ben

The sound of a bell ringing is also a damped harmonic oscillation. Hmmm...

Wed, 05/29/2013 - 21:10 | 3609094 Wanton1

One graph is for paper.

Other graph for physical.

Wed, 05/29/2013 - 21:12 | 3609097 ChaosEquilibrium

A Beautiful Equilibrium!:)

That last Schrodinger millisecond of the sudden cardiac arrest!! Are you alive or Dead? I've been there.....you can hear and you know you are DEAD!:):)

Wed, 05/29/2013 - 21:25 | 3609116 Yen Cross