My model forced me to sell half of my risk off assets, GLD, TLT. Additionally, I sold every God damned stock that I owned, because the market cap was all wrong. This week was all about small cap. Since I’ve been quantitatively tracking this, I’ve seen the market reward smaller and smaller capped companies over the past 5 weeks. As such, I am now long a basket of 12 stocks, across various industries, in the $1-5b market cap quintile.
Everything else had a lackluster week. Mostly, stocks were flat, aside from the smaller ones.
I understand the risk inherent in allocating assets into a strategy that is backward looking. However, predicting the future is even harder. Mostly, stocks in motion tend to stay in motion. When a gorilla run is set to ensue, very rarely will it end in 1 week. In my studies, large runs usually stretch for 7 weeks. The point of this systematic approach is to discipline my allocation into what’s working now — forcing a quick end to bad trades and underperformance. I am chasing alpha, but in a smart way.
Details of my new portfolio are in Exodus.
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Excellent. Looking forward to seeing a quarter or two worth of performance data.
Exodus OB signal is messed up.. On everything.
Someone get ADMIN on the phone.
It’s fucking amazing. I’m seeing oversold all over the microcaps and lower but the usual insane volatility. I want the index to go up up up so the shorters get fucked.
MBOT was supposed to hit 26 dollars by now and then the rumors of a SPO dropped out of the sky.
tech crapped its pants this morning.