Jeffrey Cohen, President, US Advanced Computing Infrastructure, Inc.
"It was a dark and stormy night..."
NASDAQ was falling, long bond yields were screaming higher, the dollar was strengthening, and fintwit tears could have overflowed Lake Michigan. People were scared of the market. Bitcoin had fallen $10k per coin, and the meme stock aftermath (GME and AMC) was a shattered set of dreams for retail and hedgies alike. The other thing we noticed was that annual returns for our three market exchanges we use in our model were all over 20%, and one was 65%. These are heady returns.
In other words, it was time for one of our clients to think about a balance of long and short positions. Get to the safe spot where you make money purely on Alpha and not on Beta. Check out our tab 'Market Questions & Data' for explanation of terms.
We were ready for the challenge and revised our original Chicago Quantum Net Score model (our quantum algorithm) to pick 'dogstars' or stocks that had exceptional volatility, without a sense of direction. In other words, their volatility exceeded their expected market returns.
So, we did it. We are now offering that service on our website for clients that want a set of stocks to look at not owning (or shorting, or buying puts). So far, the results are pretty good. Initially we see the stocks falling, but then recoveries happen. We plan to watch these stocks for a few months and report on progress.
It did find a stock that is in real trouble...although we had to study the financials and bond covenants and amended agreements to find out how badly they were in pain. They owe more than $80M to a sharp investment house in Jersey (no, not New Jersey) due March 31, 2021. I cannot see a way out for them...and so the model has already had value for our client.
Check it out for yourself. A big run is $750 (where we evaluate exchanges) and a small run (where you provide the tickers) is $150. Until supplies last, we will buy and donate a box of Girl Scout cookies for each paid run.
You can call me, and I can walk you through the logic and math. Contact info is in the 'Contact' tab. This is pretty cool work.
Strategic IT Management Consultant with a strong interest in Quantum Computing. Consulting for 29 years and this looks as interesting as cloud computing was in 2010.