THE BEST STOCK SCREENER

In the quest for information on stocks one will scour the web for hours. Lately I came across what I believe is the best stock screener out there. It is the FINVIZ stock screener. This stock screener allows easy downloading to Excel and a variety of variables that can be used to screen stocks. Hope it is helpful to you all.

STOCKS

LONGS


GLW Corning Inc
AMD Advanced Micro Devices
ADBE Adobe Systems Inc
NVDA Nvidia Corp
ADP Automatic Data Processing
HPQ Hewlett-Packard Co
JBL Jabil Circuit Inc
CSC Computer Sciences
MA Mastercard Inc A
MU Micron Technology Inc
TDC Teradata Corp

www.TRADINGXYZ.com

GOOGLE SPREADSHEETS; SPDR's & SP500

On the top this site you will see a "STUFF" tab. This is something I am developing and will continue to update and improve. Let me know your suggestions as I go along.

I have developed two Google spreadsheets for the top 10 SP500 constituents, such as Exxon, Microsoft, etc., and for SPDR's. Let me know what you think. Hopefully we can get some indicators or perspective on the market from these. Be sure to check back frequently because they will continue to improve as I get new ideas and Google provides more functionality.

RELATIVE VOLATILITY OF STOCKS & BONDS

This post concerns the volatility in the US Bond Market relative to the US stock market. In particular, why is it that volatility is currently higher in bonds than in stocks? Does this mean anything? To be honest, I am not sure, but I can lay out some possibilities.

First, the “flight to quality” as economic armageddon approached was significant, unique, and had never been seen before. Worldwide money flows initially went into US bonds and dollars, but I still think the level of uncertainty is high regarding credit conditions in the US. Given all the money that was pumped into the system the fear of higher inflation lingers. Others feel that anemic economic conditions will dampen inflation and inflationary expectations. My opinion is that most people do not understand or appreciate the magnitude and reality of what has really happened over the past few years. The bond market is also trying to figure everything out, thus the higher volatility.

Second, very little to nothing has been done. America just borrowed more money, threw it at the problem, and continued as if nothing has happened. America may have trouble financing its problems into the future. The bond market has noticed this and I believe it is another reason for its higher relative volatility.

Third, America needs to get its fiscal house in order. How we are perceived by the rest of the world is reflected in our markets. How we handle our economic problems matters. Markets are affected by many variables, but two of the most significant factors are confidence and perceptions. These are human emotions driven by many things, nonetheless, they can easily change. Lower confidence is a result of higher uncertainty. In my opinion, lower confidence and negative perceptions of the US have also contributed to the higher relative volatility of bonds to stocks.

TRADING XYZ

Trading xyz is a blog that complements our website. The name and title is not about something abstract. XYZ trading is about system trading three intraday models on the SP500 on the CME Globex network. The XYZ models have been backtested and proven since 1998. The strategies are fully automated. We invite our readers to check out our historical performance and to also look at our money management program. We offer a complete solution to trading.

Institutional trading firms, CTA's, and hedge funds are also welcome. Our systems can be programmed against yours to fully automate all the strategies.

ENTROPY ANALYSIS OF US BONDS AND STOCKS

In general, since WWII, whenever the feeling of uncertainty or fear arises, money flows into US dollars, US bonds, and gold. As uncertainty decreases, money flows out of these assets and into other assets, such as stocks. A look back at the two charts I created yesterday shows how the level of volatility in both the US stock market and the US bond market went up and came down over the last few years. How can we analyze this in terms of entropy and dissipative systems?

In terms of entropy, the entropy of each individual market participant increased as the news and reality of the economic collapse spread. This resulted in a higher individual level of entropy, and consequently, a higher level of entropy for all market participants viewed as a group. For purposes of this analysis, and in terms of open and dissipative systems, each market, and all market participants together as a group, can be considered as three open and dissipative systems all interacting with one another.

Mr. Prigogine suggested that open and dissipative systems import matter, mass, energy, or information into their systems in order to reduce the increased entropy within the system. These systems then process whatever it is that was imported and export entropy into their surroundings. Entropy that is exported is also called negentropy. It is not a big step to state that after individuals imported information and processed it, they exported entropy back into stock and bond prices. This higher level of entropy in the markets was reflected in the higher standard deviation of prices. So how do the markets reduce higher levels of entropy? I would argue that both markets used money to reduce their heightened levels of entropy. Once the money was “churned” and the process played itself out, the markets exported negentropy to some other system. The exporting of entropy by the markets is reflected by the lower calculations of volatility.

Obviously this is a simplified example, but it may help one appreciate the enormous complexity of many open and dissipative systems working out their entropic differences.