Morning Audibles 6.15.10 - A Gaussian Blur

C'MON on man... Every AAPL lover knows what a "Gaussian Blur" is right? It's right there in your Photoshop... It's that feature that you can make any photo (or scene) look EXACTLY the way you want it to (or ONE of them, at least)...


You know how it is...


A decade (or more) of being FORCE FED by the media that you had to GO GREEN (whether it's "carbon" or "shoots" - which, by the way is odd because you'd think plants would ADORE a planet full of bountiful carbon)... But I digress... You're so tired of hearing GREEN (as in "money"), you actually just throw up your hands and give in...


Because THIS is what green really amounts to in its SALES PITCH form (see? it's damn useful to the "sales pitchers")...

(If a BLANK SPOT on your browser appears here... The EMBED video can be retrieved HERE...)

http://www.youtube.com/watch?v=clnozSXyF4k&feature=player_embedded

But what about Gauss?... "Johann Carl Friedrich Gauss" (to be precise)...

This dude 
(chicks dig him because he rarely wore underwear)...

What does he have to do with anything?


Nothing really... Nothing NEARLY important as great thinkers (and internet inventors) like famous "green advocate" AL GORE might be contemplating... 

"I'm GOING GREEN... So spend taxpayer dollars to "subsidize" companies that I've invested in that will benefit when CARBON TAX CREDIT DOLLARS are levied upon citizens, by the government, after my propaganda tirade is fully completed"... I'll be rollin' in GREEN by then...

Back to GAUSS (the OTHER blur)... For our purposes, "JoGA" (as his friends like to call him - and after which was named an athletic discipline that has recently sent LULULEMON stock skyrocketing), can perhaps explain WHY this market hasn't CRASHED YET...


It has something to do with this...



In vector calculus, Gauss' theorem (Carl Friedrich Gauss), Ostrogradsky's theorem (Mikhail Vasilievich Ostrogradsky), or Gauss–Ostrogradsky theorem is a result that relates the flow (that is, flux) of a vector field through a surface to the behavior of the vector field inside the surface (We're talking about 'Leading Diagonals", or "LD's" here)...

More precisely, Gauss' theorem states that the outward flux of a vector field through a closed surface is equal to the volume integral of the divergence of the region inside the surface...

Intuitively, it states that the sum of all sources minus the sum of all sinks gives the net flow out of a region... It is an important result for the mathematics of fluid dynamics...

It kinda looks like this (when scribbled onto one of those paper tablecloths that they use for quick table changes in PIZZERIAS - or at least the ones I go to... Because CV, a "connoisseur" of Italian style eateries after having lived 12 years in Italia... Prefers the idea of a tasty inexpensive pizza BETTER than the "muckety-muck" idea of regurgitating an EXPENSIVE meal after sitting in a Hamptons [Italian STYLE] Bistro listening to "Wall Streeters Who Blog" bombard me with artillery fire all evening, about things like "typical recoveries", over a plate of FOIE GRAS)...

Oh yeah (this is how it looks on a napkin)... Mixing metaphors again... Sorry!

Now... If you require a more simple explanation... It basically is the mathematical THEOREM that explains WHY CV put up the "Dance This Mess Around" video clip the day after The SPX hit 1040 a few weeks ago (just so one understands my motivations for such things)...

Let's... NOW... Delve DEEPER into the "Dante's Inferno" of simplicity...

WTF is this? (Not your fault AMEN - I was just wondering why there have been 33 candles since the VIX took out the 55SMA to the upside)... Just wondering... You know... Not "34" candles or anything like that...

Speaking of wondering... I was also wondering why HFT's (when they want to keep the market "pumped" via perceived [GAUSSIAN] liquidity, they use these stocks [instead of the TYPICAL RECOVERY DJIA30])... Just wondering, again...

Forget the Dow 30. The 25 companies listed here were the favorites of high frequency traders in the U.S. during the past two months, based on a recent study by Woodbine Associates of Stamford, Connecticut.
Company Name (symbol)	Trading Volume* (millions of shares)
Citigroup (C)	507.8
Ford Motor Co. (F)	132.7
Bank of America Corp. (BAC)	116.7
General Electric Co. (GE)	90.3
Intel Corp. (INTC)	73.0
Pfizer (PFE)	71.5
Sprint Nextel Corp. (S)	68.2
Microsoft Corp. (MSFT)	64.8
Cisco Systems (CSCO)	55.2
Wells Fargo & Co. (WFC)	45.4
JPMorgan Chase & Co. (JPM)	44.4
Las Vegas Sands Corp. (LVS)	39.6
Alcoa (AA)	38.3
AT&T (T)	30.9
Oracle Corp. (ORCL)	30.4
Regions Financial Corp. (RF)	29.5
Exxon Mobil Corp. (XOM)	29.4
Fannie Mae (FNM)	29.2
Motorola (MOT)	26.8
Yahoo! (YHOO)	26.6
Dell (DELL)	26.4
EMC Corp. (EMC)	24.3
Apple (AAPL)	23.7
Morgan Stanley (MS)	21.2
Home Depot (HD)	18.8
Source: Woodbine Associates, Yahoo! Finance. *Average daily trading volume for March through May 2010.

In the end, CV's intellect is too small to comprehend these kinds of things...

So let's get back to World Cup and some Administrative/Chicago Type/Dairy Queen wannabe runnin' "ass kicking"... Shall we? ;-)... 


NO! You say... "STOCKS is what I want to know about... "SHORTING THEM" (in particular)...