In this podcast, we discuss the wave.
What is the wave?
Zero is the Wave
Waves have properties like wavelength, frequency, and speed, and we can describe them really, really accurately with equations, even without knowing what kind of substance are waves in. So these waves take their life on their own above and beyond the material. A wave can cross an ocean even though the individual water molecules are just going around in tiny circles and appear to have a life of its own.
*The image depicts an enormous wave threatening three boats off the coast of the Japanese town.
The examination of waves is no different from looking at the rise, fall, and rise of markets. Underpinning markets is supply and demand - bid and ask. The composition of sum bids and asks within the auction market in totality are the waves or cycles you're sensing - reading the tape (below).
Molecules are the financials and fundamentals of the stock, index, and the economy. These are the ‘sum of all parts’ from smallest to biggest. This is why it appears to you, the reader, that the market has a life of its own, relative to valuations or ratios. Understood as the bifurcation of price and value which rarely ever cross paths.
*Bull and bear markets are just how the numbers are arranged.
*Market Structure gives clues to the present state of market development
More to come!
Agent 0
*Was the past directed by hallucinations? Why is the past depicted with noble automatons who knew not what they did? “It is one God who makes Achilles promise not to go into battle, another who urges him to go, and another who then clothes him in a golden fire … the gods, take the place of consciousness. The beginnings of action aren't in conscious plans, reasons, and motives. They are in the actions and speeches of gods. To another, a man seems to be the cause of his own behaviour. But not to the man himself.”
Confessions of a Fund Manager II