"Today’s Washington Post has an article touting a mathematical technique called the “Hawkes Process” for correlating terrorist attacks. Apparently, like seismic waves for which it is used, there is a mimic-like effect at first and then recurrences attenuate with time. It struck me some of you nerdy types would know if these equations are used in technical analysis of stocks. Please advise if you have the time."
I got my answer through Google. Sorry to break the flow of the thread. But this is vaguely related to the "Big Short" discussion. There are a lot of references to the "Hawkes Process" and finance. I wouldn’t be surprised if that doesn’t lead to the algorithms used by fast trading brokers. They are able to gather and initiate “shocks” to the market with massive information at their beck and call.
I have you read the book 'Dark Pools'? It's all about that. Fascinating book, check it out.
Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market: Scott Patterson: 9780307887184: Amazon.com: Books
A news-breaking account of the global stock market's subterranean battles, Dark Pools portrays the rise of the "bots"- artificially intelligent systems that execute trades in milliseconds and use the cover of darkness to out-maneuver the humans who've created them