{"id":53390,"date":"2021-01-28T17:23:00","date_gmt":"2021-01-28T22:23:00","guid":{"rendered":"https:\/\/www.technologyinvestor.com\/?p=53390"},"modified":"2021-01-28T17:23:00","modified_gmt":"2021-01-28T22:23:00","slug":"how-the-algos-play-the-market-exacerbating-the-highs-and-lows-two-stocks-that-could-be-interesting","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=53390","title":{"rendered":"How the algos play the market, exacerbating the highs and lows. Two stocks that could be interesting"},"content":{"rendered":"

Once upon\u00a0 a time, I read that one computer algo had never ever had a losing day. Algo trading is secret. Most obvious is that it goes with the flow. When stock prices are going up, it assumes they will continue to go up and when they go down, they will continue to go down.<\/p>\n

That seems to me to me the best explanation for the violent down and up of yesterday and today. Algos typically don’t own stock overnight. So they await the morning’s “sentiment” and go with the flow. Everything with them is ultra-short term — moment to moment. It’s easy to write rules that say “reverse direction” when you make a few losing trades.<\/p>\n

Of course, knowing order flow helps, too. I don’t know how much information the algos get on order flow. But then I wonder how all the “free” online brokers get paid? It’s got to be selling order flow.<\/p>\n

For us mere mortals, you watch the flow and the sentiment and place your buy orders when the sun, the moon and the stars are in alignment. Which means I buy stocks I like, rather than agonize over exquisitely trying to time the market. I find it’s better to check out the stock’s present and future business than worrying too much about the minute-to-minute pricing variations. In the last six months or so, I’ve found that if I don’t buy when I’m “hot to trot,” I often lose the momentum and end up moving onto something else — like shoveling snow or buying stuff online (Amazon, Lands End, Nike, etc.) I don’t need.<\/p>\n

Apple had a blowout quarter — on every metric.<\/strong><\/span><\/p>\n

Yet its stock is down 3.5% today. That makes no logical sense, unless you assume that some owners of Apple’s stock were waiting for the quarter’s results to sell their holdings of Apple. My humble opinion is that Apple is a screaming buy.<\/p>\n

Danimer Scientific is worth looking at<\/strong><\/span><\/p>\n

The world’s oceans and rivers are choking on plastic.<\/p>\n

Danimer Scientific (DNMR) makes biodegradable “plastics.” A financial report I’ve just seen guesses a 59% CAGR and a 140% increase in EBITDA in the next five years. They have a three-year lead on competitors, allegedly.<\/p>\n

Sadly, it’s had a huge recent run.<\/p>\n

\"\"<\/p>\n

I suspect it could double in the next few years. Everything I hear and read about the company is pretty impressive. They have a deal with Pepsi to put Pepsi stuff in Danimer containers.<\/p>\n

The ESG movement is huge. ESG stands for environmental, social and governance.<\/p>\n

Here’s why I hate DirecTV (and its owner AT&T)<\/strong><\/span><\/p>\n

+ I can’t cycle back — like two minutes — and re-listen to something.<\/p>\n

+ It blacks out constantly. Especially when Federer hits a great shot.<\/p>\n

+ The weather is not kind to DirecTV.\u00a0 A tiny drop of rain and it’s all over for the next 30 minutes.<\/p>\n

+ Whoever invented these moronic things needs to be locked up. I’ve never used half the stupid buttons. Compare these remotes to Roku.<\/p>\n

\u00a0\"\"\u00a0\u00a0\"\"<\/p>\n

My favorite “remote” is my laptop on which I watch YouTubeTV.<\/p>\n

Are paintings a good investment?<\/strong><\/span><\/p>\n

Botticelli painted this in 1480.<\/p>\n

\"\"<\/p>\n

If you had paid $100 for it in 1480, and sold it this week for $92.2 million, your rate of return would be — drum roll —<\/p>\n

\"\"<\/p>\n

But it turns out\u00a0\u00a0that\u00a0Sheldon Solow<\/a>\u00a0bought it for about $1.3 million in 1982 and his IRR is better.<\/p>\n

\"\"<\/p>\n

None of these calculations include commissions and insurance which can be high.<\/p>\n

All my rich friends who own art say you got to like looking at it on your wall.<\/p>\n

I don’t think I could take this guy for 39 years.<\/p>\n

Haven’t had your vaccine shot yet?\u00a0<\/strong><\/span><\/p>\n

If you don’t see the picture, click on the YouTube link. It’s delightful.<\/p>\n

\nhttps:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2021\/01\/fluinjections.mp4<\/a><\/video><\/div>\n

Affirming my impeccable dress sense<\/strong><\/span><\/p>\n

I met this 15-year old this morning in Chatham’s Pieconic store.<\/p>\n

\"\"<\/p>\n

She’s wearing her pajamas — which is all I’ve been wearing for the last ten months. I publish this so my family will get off my case. My sartorial taste (especially in pjs) is excellent. I wear only executive pajamas.<\/p>\n

That’s it. I’ll see you tomorrow. — Harry Newton<\/em><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Once upon\u00a0 a time, I read that one computer algo had never ever had a losing day. Algo trading is secret. Most obvious is that it goes with the flow. When stock prices are going up, it assumes they will continue to go up and when they go down, they will continue to go down. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-53390","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/53390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53390"}],"version-history":[{"count":7,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/53390\/revisions"}],"predecessor-version":[{"id":53411,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/53390\/revisions\/53411"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}