Market Risk Reward is shifting to the downside via @andrewnyqyuist
Harmonic patterns are tough to decipher. But at the same time, they are a valuable piece of research.
Natural market rhythms are likely more reliable in massive global markets. In a post this week, @interestratearb shared a very important bearish harmonics pattern in the NASDAQ 100 futures.
Since 1985 the incentive to lend, measured by NIM, has never been worse. @michaellebowitz
@TradingOnMark notes the potential corrective wave higher starting in the Australian Dollar.
Market Operator Insights
It’s important to recognize rigid thinking limits our potential. If your trading results aren’t what you want them to be, take some time to sit and think on this piece from @mercenaryjack.
Howard Marks’ latest memo masterfully mixes the markets, fantasy football and Yogi Berra in his latest memo.
…in order to be superior, a player has to do something different from others and has to have an appropriate level of confidence that he can succeed at it. Without conviction he won’t be able to act boldly and survive bouts of uncertainty and the inevitable slump.
Things are never as cut and dry as they seem. @NoanetTrader hits on a some key points about hindsight investing as it relates to survivorship bias.
Beyond the occasional pangs of regret or envy, or fleeting pleasure of chuckling at someone else’s misfortune, investing hindsight is dangerous because it can undermine your investing.
A high level of short interest is not a positive catalyst for a stock – @JFinDallas
News and Other Research
As markets become more algo driven, successful trading will depend more on our ability to understand emotion and accept that most edges that are common knowledge in trading books have been changed or arbitraged away. @Linkis_com discusses this idea in a broad context.
The best managers acknowledge and make room for what they do not know— not just because humility is a virtue but because until one adopts that mindset, the most striking breakthroughs cannot occur. – Ed Katmull
As information becomes completely open we have more reasons to be skeptical of everyone. Do we need systems in place to ensure trust? Is that the niche the Bitcoin will fill?
“People tend to express the highest level of fear for things they’re dependent on but that they don’t have any control over, and that’s almost a perfect definition of technology,” via @cariromm, The Atlantic
Change happens fast. @zackkanter has a very interesting take on the future of autonomous cars and what that means for the world
What is LinkedIn’s greatest strength? It might just be that it doesn’t rely on ad revenue. Their ad revenue dropped 30% year-over-year. Hat Tip to @howardlindzon
Why we hate cheap things via @TheSchoolOfLife
@techinsidr dives into Amazon Web Services dominance.
Thanks for reading!
Twitter: @ATMcharts
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
