S&P500 Market Sounds

I was doing some training at the CBOE (back when the pits were full of people) one of the market makers remarked about how he could tell how the market was doing just by the pitch of the crowd.

Recently I watched a movie about Beach Boys’ Brian Wilson making the album Pet Sounds.

We are always experimenting with different ways of analyzing data and came across this interesting concept that reminded me of Pet Sounds and my friends comment about market pitches.

The idea is a pretty basic and could be more complex to include volume, crescendo, daily tick data etc. Nonetheless it is fun.




Another Market Music Abstract…

When training at the CBOE we frequented a placed called The Cactus in Chicago https://www.cactuschicago.com; I bought a shirt from them that says “trade globally drink locally” on the front and on the back it says “don’t drink and trade.” We all got a kick out of that.

Now maybe you can add don’t rock out and trade based on this report of hard rock songs corresponding to crashes on the highways.

We know drinking and driving is dangerous to your health, but what if rocking out and trading is bad for your financial health (especially if you are going long)? Although Dr. Burry (The Big Short) may disagree, but then again he was going short. https://www.youtube.com/watch?v=WlJkazT96hU

Lastly, have you ever heard a song for the first time and while your listening you can easily predict what the next note will be played? This is prediction born from experience of listening to different types of music which is formulaic, simply because you listen to lots of different types of music and that next note just fits the song. Well, it seems like the current market scare sounds like an old refrain from something I have heard before.

Be careful out there and Happy Trading with many happy returns.


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