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SkyNet's Favorite "Harmonic Oscillator" Algo Is Back
Back in July 2012, market participants watched in stunned silence as the latest indicator of the broken market, the "harmonic oscillator" algo, took control of three of the largest names in the Dow and proceeded to.... oscillate them. We recorded this hilarious market abnormality as follows.
IBM
KO
MCD
* * *
Over two years later, it is good to see our old friend is still right there and that SkyNet still reigns supreme, because as the following chart of CTRP, courtesy of Nanex, shows "new normal" algo-controlled stocks appear to have just two default modes: a relentless ramp higher (courtesy of a VWAP buyback programs or just momentum ignition), or a far more "nuanced" sinewave oscillation up and down in what only a Princeon economist could call "price discovery."
Should anyone care? Of course not: with stocks at record high, clearly there is no reason to be concerned about anything.
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It's like amortizing a fart bulging your intestines over three or four puffs. If you time it right, your bottom won't blurt.
yes, but ulitmately you end up shitting yourself...
I only buy stocks that go up......
A couple of lucky ones maybe, but then comes the surprise shart at diner with your girlfriend.
Obviously this is a classic case of animal spirits at work...
Comon, every market technician knows momentum moves in log-space.
No less than a spirit of Russian woodpecker signal reverberating across the capital markets.
this one too http://www.zerohedge.com/news/2013-05-29/damped-harmonic-oscillator-algo...
The entire Australian index 200 regularly follows this exact same pattern, usually in the first hour of "trading", with vertical moves forming the oscillations. But everyone just pretends not to notice. All coincidence and random walks, if you see a pattern here it is just pareidolia. Yup.
Nothing to see here. Just efficient markets at work.
New Algo code:
loop:
Move along. Move along.
goto loop
Nice , I was starting to miss that one.
I can imagine the menu board:
MONDAY: Sine
TUESDAY: Sawtooth
WEDNESDAY: Step
THURSDAY: RC Oscillations
FRIDAY: Chef's Special
Buy low sell high, at least you have clear buy/sell signal here.
Does some ZeroHedger make money on those "easy" trading market ?
Crocodile algo is my favorite though!
Anyone staring at the markets in <15min increments will suspect such algos are omnipresent, lurking just below the surface, designed to provide enough periodic ignition to rake in small profits multiplied thousands of times. It seems these “nuts and bolts” algos are separate from the larger, more powerful VWAP codes that decide on overall daily movement -- these cutesy “oscillators” work within the larger algos’ framework, like those little scavenger fishies that eat shark shit off a blue whale’s belly.
My theory: when they’re this obvious, it’s either: a) a mistake in the volume component of the code, making them too salient; b) two competing algos from different firms combining, like the “phase shifting” or “flanging” effect on sound waves first heard prominently on “Pictures of Matchstick Men”. As if you wore a flat panel X-ray machine on your chest, exposing the innards for all to see, these examples are nothing less than algo frat boys with their hexadecimal pants down. ( Ooops!)
amazing shit. perfect 1 hour cycle aligned with wall clock time!
must be a bait to flee some more smart wannabe retail investors.
Need to get the Channelingstocks.com guy back on TV... at this point I might subscribe
We oscillated some folks...
"in what only a princeton economists could call price discovery".................... LOVE IT !
when are we going to throw that red headed step child zuckerburg in jail for all the privacy violations he and his stupid company committed??? !!!
and this out of control tyrannical government and all their surveillance and spying?
fok these clowns
i've had it with these foking voyeuristic clowns and their foking technology
they want to be the all seeing eye of god spying on the masses and everything they do is in secret and behind closed doors. the whole idea needs to be "flipped"....... the elites are the ones that need to be spied on, they should all be wearing body camera's with audio 24/7 along with the police.
this double standard shit is bullshit!
I want the .gov spied on........ they are the beast that needs to be shackled not us.
throw out your computers and smart phones and go low tech.
IMO, this is more likely an algo than a oscillator which contains a a fairly obvious Fib sequence. The example of FNMA in the discussion has Fib responses whereas one purpose of the charts algo design herein is to crush Fib trading. Only a Terminator could produce this type of trading pattern.
'If you can read this, you're the resistance'