Waft
Victor Niederhoffer recently posted on his blog:
I have often thought that there are hidden signals in markets. My favorite signal is silver, which I call the omniscient market in that whenever something is good or bad it seems to hit the silver market first. Recently, I have been discovering the hidden signals in the Dow Jones, which seems to go the 50 and 100’s during the day, much more than randomness would suggest. Another hidden signal is the movement in bond prices that always seem to predate a major move in stocks. Another one is the Israel market, which I have found quite useful in predicting where the US markets will waft.
If Niederhoffer can profit from this, and stir clear of those sudden market moves that quash belief in mean reversion, I wish him well. The word “prediction” strikes as a problem in waiting.
