Re: Why are value investor types so rigidly opposed to TA?
And the problem with big successful funds like Renaissance is that no one really knows what they do. There are many trading strategies such as statistical arbitrage, pairs trading, other arbitrages, etc that have little to do with TA as most people define it, but they are quick to include the successful practitioners as evidence of TA's success."
I was wondering if they have discovered stuff such as, "when a one hundered dollar stock is up 75 cents in the middle of the day, the expected value of where it will be this time tomorrow is $100.45. Because there is a good chance the 75 cent rise was a statistical blip." Roughly speaking. If so, a company with their resources can grab some of that 25 cents sitting there. If I am right it means that they are using pure price movements to help them make money. It wouldn't help any of us though.
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