iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,430 Blog Posts

Here’s How I Identify Rotation Using Exodus

I found a nest of stinger bees in my laundry room, which is ironical unto itself. Having been stung by 2 bees this summer, I was a little hesitant to take this on — but I did so nonetheless. It was sort of like my bike ride last night and the giant warning about entering the park without orange attire, since it is designated for ‘deer management’ — festooned by hunterFAGS prancing around in military attire in search of sport. I thought about it for a moment and then rolled right in with my brown garments and deer antlers nonetheless.

Back to the matter of the bees, I got in there and vacuumed them all up — maybe 50 in total, maybe more. It wasn’t hard, or dangerous. Instead, it was actually quite fun.

Let me show you a tool I’ve been using in Exodus lately, juxtaposing the annual Sharpe scores vs the weekly. Think of these scores as technical indicators stretched over different timeframes. This screen I am about to show you displays annual Sharpe’s that are low and weekly one’s that are strong — perhaps producing stocks in the midst of rotation from out of favor to in.

And here is the tech sector isolated, same screen.

Why is this relevant?

Because advisors who do not produce high Sharpe ratios in their management get whipped and beaten within an inch of their life. Whether they know it or not, they’ll be forced to buy any stock with a high Sharpe, if they intend to keep their clients, who now obsess and demand to know Sharpe scores on a monthly basis.

At the end of the day, we’re all trying to front run one another — jump in front of the line and smack one another in the face with cream pies.

Enjoy your Sunday.

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4 comments

  1. acehood

    Cream – cash rules everything around me.

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  2. moosh

    What are stinger bees? I bet you murdered a honey producing hive by way of a man made tornado

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  3. dragun

    where are you drawing your Rf rate from?

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  4. joyous__ending

    You’ve been picking winners like ripe apples from a tree.
    But you also sold out of a lot of winners too soon. I’m still holding onto many of your calls from the summer win streak.
    I suggest people hold onto the winning trades from corporations with solid earnings.
    Fly is the best at picking mediocre stocks that can zoom, these ones can be flipped when Fly says bail.

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