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Gene-
What a gem of a post! Thank you. I later found an explanation of what he
does with volume;
and its exactly as you say. He sums the volume which occurs on upticks
minus those which occur on downticks; and subtracts one from the other. I
don't think I've stated the math exactly correct but my understanding is
that it pretty much is a clone of the way Wordon's calculated his old tick
volume. The Feb, 1993 issue of TASC explains this in some detail and shows
some charts.
chas
----- Original Message -----
From: Gene Pope <gene@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, September 27, 2002 12:44 PM
Subject: Re: [RT] GEN: CROSSPOST ON VOLUME, LASZLO BIRINYI AND LIVERMORE
> I had funds with Birinyi until end of August this year. He actually saved
my
> butt by dumping me out of stocks completely early in 2001 (he does not act
> as a Hedge Fund so does not short).
>
> His methodology is not a big secret, and I still do subscribe to his way
of
> thinking.
>
> Basically, instead of using available volume reports, he would accumulate
> every single solitary tick on every listed issue in the market (!!!) to
> decide whether it represented accumulation or distribution. He then
created
> his own A/D charts that were like no other (at the time, I'm sure it's
been
> copied many times over by now).
>
> Based upon his own unique mixture of Fundamental knowledge, plus watching
> for interesting divergences between price and his custom A/D line, he was
a
> momentum player. Problem was, linear momentum became chaotic.
>
> His newsletter in the last couple years decried the loss of what you
called,
> "The Good 'ol Boy Network", and it's negative effect on transparency,
> because if news had to be released all at once, then it might as well not
be
> released at all... (boy have we seen the fruits of that come true). He
also
> foresaw a loss of predictability because of an increased "hysterical
> reaction" to news in the market, again caused by the easy proliferation of
> such news. He showed many examples of a Blue Chip like IBM, wildly
swinging
> on news of some pipsqueak tech startup, and his point was... how the hell
> does one enter and hold? His conclusion (over 2 years ago)... was that the
> current environment is a traders heaven, and hell on wheels for funds.
>
> My reaction to this was always the same... either we deal with it, or we
go
> into a cave somewhere.
>
> As for any "programs" he might have devised, he would occasionally
daytrade
> on my account, long only, and I'd say it was about 95% accurate, but these
> trades only came along rarely... not even enough to pay for his reasonable
> fees.
>
> Do I believe he's adapting? Yes, reluctantly. I also know that he's a man
of
> extreme integrity and intelligence. One of a kind. But when I look at
where
> to put my cash now, I'm beginning to seriously consider the "anchor"
> theory... that when I get back into Buy/Hold, that it will be with a less
> aggressive fund that really goes for the long term... They exist, I've
> interviewed a few already. Most of the cash goes there. Then X% remains as
> trading funds... so the risk is compartmentalized. Bond ladders stay the
> same.
>
> Best regards,
>
> Gene Pope
>
>
>
> ----- Original Message -----
> From: "Charles Meyer" <chaze@xxxxxxxx>
> To: "REAL TRADERS" <realtraders@xxxxxxxxxxxxxxx>
> Sent: Friday, September 27, 2002 11:08 AM
> Subject: [RT] GEN: CROSSPOST ON VOLUME, LASZLO BIRINYI AND LIVERMORE
>
>
> >
> > ----- Original Message -----
> > From: Charles Meyer <chaze@xxxxxxxx>
> > To: <WyckoffStudies@xxxxxxxxxxxxxxx>
> > Sent: Friday, September 27, 2002 10:03 AM
> > Subject: Re: [WyckoffStudies] Jesse Livermore's story (PDF format)
> >
> >
> > > Hi-
> > >
> > > Ditto to your comments about this classic reference reread. Since
this
> > > group has been
> > > discussion VSA, etc. I wanted to call everyone's attention to an
> > > organization called
> > > Birinyi Associates. The contact info is: (203) 629-2400; Box 711,
> > > Westport, CT 06881. I am
> > > also sending to the list some info about his volume work which
appeared
> in
> > > the Feb, '93 issue of
> > > TASC. Two things of interest here. First; he used to be a former
> > director
> > > of Salamon Brothers.
> > > Why is that importnat? Because SB (now SBSB) was and is one of the
> major
> > > players in the
> > > arena of program trading. They are also part of the good-ole-boy
> network
> > > and have access to
> > > tons of information on a daily basis. They see stuff we mere mortals
> are
> > > denied; in the way of
> > > data and especially money and volume flow. To try and make a long
story
> > > short; Birinyi has
> > > done a lot of research with volume and cites Livermore in the magazine
> > > article. I contacted them
> > > a few years ago; and they make available a service but its quite
> > expensive.
> > > Perhaps we could
> > > figure out what he's doing.<g> Feel free to cross post this to
another
> > list
> > > for thoughts and
> > > comments.
> > >
> > > chas
> > >
> > > ----- Original Message -----
> > > From: Dan Nicol <dan_nicol@xxxxxxxxxxx>
> > > To: <WyckoffStudies@xxxxxxxxxxxxxxx>
> > > Sent: Friday, September 27, 2002 9:32 AM
> > > Subject: [WyckoffStudies] Jesse Livermore's story (PDF format)
> > >
> > >
> > > > Hi All,
> > > > I've come across a link, from the yahoo Gann study forum. It
> > > > contains a free download of the Mr Livermore's classic Reminiscences
> > > > of a Stock Operator. It's in a PDF format so you'll need the Adobe
> > > > acrobat reader to see the text.
> > > >
> > > > <http://www.stock-market-seminars.com/downloads/reminiscences-of-
> > > > jesse-livermore.pdf>
> > > >
> > > > I'm almost half way through and it's excellent. How much is true I
> > > > don't know but it contains many gems and is well worth the time.
> > > > His tales from the bucket shops are intriguing, and his struggle to
> > > > adapt his trading style from the bucket shop to the brokerage house
> > > > very interesting. He was wiped out many times but got back off the
> > > > floor more times than Rocky. I'm sure most of you have read this
> > > > book but if you haven't I'd highly recommend that you do. You will
> > > > learn more from this book than you think, I promise.
> > > >
> > > > All the best,
> > > > Dan
> >
> >
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
>
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
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>
>
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