TGIF

Not much news today.

Sellers came out at S&P 1000 as predicted in this blog. But it doesn't take a genius to figure that out. I suppose the market will base or grind up. I'd guess a huge number of beefers and individual investors are on the sidelines and now, hearing about the S&P being up about 10%, will get some courage. Or is that greed ? Maybe greed will start to gain some area from fear in the emotional phase space.

FYI, "phase space" is a two dimensional space of position and velocity - really six dimensional if one uses the true three dimensional position and velocity vectors to create it. Well, classical physics had a number of interesting theorems about phase space and it was a good concept for understanding the dynamics of objects. So I'm using that concept to think about investors' emotional state - a sort of phase space made from fear and greed. Lots of these analogies from physics help me think about markets. The mathematics describing them is actually the same as the math underlying much modern finance so the analogies can be quite valid.

REITs showed strength, perhaps as some investors who actually think about the future and not just trading patterns also foresee relief in the commercial real estate financing markets. That sector can really explode up if or when the economy gets back to normal. I mean the "old", real normal, not this new syndrome of "perma-bear-itis" called "the new normal".

I've got a good bit of those in Krypto Fund, so will wait until the Fed's TALF for CMBS really happens.

Word of the Day

"Semiotics" - noun [$10]; "Semiotic" - adjective [$10]
Semiotics means (noun) 1. the study of signs and symbols in various fields, especially language; 2. Med. symptomatology.
Semiotic (adjective) means pertaining to semiotics.
Sentence: Technical analysis uses semiotic study of patterns from stock charts - viz., the high-low-close price plus volume chart - for its foundation. The classic book, "Technical Analysis of Stock Trends" by Edwards and Magee is that field's original scripture. Modern computers use the same data to create many more signs and symbols.

Das Wort der Woche

"Denken" - verb, regular
Denken means to think.
Der Satz: Ich denke, deshalb ich bin.
Sentence: I think, therefore I am.