By Jeffrey Cohen: Investment Advisor & President, US Advanced Computing Infrastructure, Inc.
$LWLG Lightwave Logic
Our short position (CQNS DOWN #1 pick) continues to rise. This is the most inefficient stock among the negative net income crowd. In fact, after a little DD, it has no revenue and likely will dilute their equity further to fund 2023 operations.
This stock has expensive PUT premiums that are not moving very much vs. the change in stock price. We will either short the common stock (if shares are available), or buy puts if the premiums fall.
Our long position has been singing Nickelback's Rockstar. We identified a three-stock portfolio for a client over the weekend (significantly more efficient than the SPY, which came in at #190). This group of stock has shot higher right out of the gate. From Monday morning, these three stocks rose with the market.
LWLG: Open 9.27, now 10.71
$SI (Silvergate Capital), $SITM (SiTime), and $UPST (Upstart Holdings, Inc.).
(This week's CQNS Long portfolio is oddly diversified in high-tech and innovative companies. One makes semiconductor timing systems (clocks on a chip), one funds bitcoin investments, and one is an AI-based lending platform.
SI: Open $150.00, now $160.52
SITM Open $253.97, now $266.00
UPST: Open $104.30, now $120.17
SPY: Open 452.06, now 461.55
Good luck to all.
Summary: The CQNS UP model has been an exceptional performer while this market has been rising. It is picking stock portfolios that are efficient, and have risen far in excess of the S&P 500. Two weeks ago we picked a portfolio of winners (for the first 2 weeks of trading), and this week looks no different.
We maintained our over-performance vs. long the $SPY, or S&P 500 ETF over 10 trading days.
Our 5-stock CQNS UP portfolio rose 19.86%, or 12.31% greater than the $SPY (excluding dividends).
Our 12-stocks CQNS UP portfolio rose 19.50%, or 11.94% greater than $SPY (excluding dividends).
In an upward moving US equities market, our 'short' or down portfolio rose slightly more slowly than the $SPY.
Our two 'DOWN" stocks rose a combined 6.51% over the period, which is 1.04% more slowly than the $SPY.
In summary, in a rising market our CQNS "UP" portfolio is significantly out-performing the $SPY while our CQNS "DOWN" portfolio (limited to two stocks) is slightly out-performing a short $SPY portfolio.
We will be running our CQNS "UP" and "DOWN" portfolios this weekend to select a new set of portfolios.
Notes: We mailed letters (US mail) to potential clients sharing our portfolio picks which should have been delivered about a week ago, which may have impacted performance.
We do not have a position, nor have we traded any of the stocks listed above.
We are considering whether to create separately managed account(s) which may contain then current best "UP" and "DOWN" portfolios in a mix of long and short positions to capture the over-performance of the model while hedging away overall market risk.
1. Long portfolio without 'short' hedging market results
2. Long portfolio with 'short' hedging market performance
3. Long and short to capture both "UP" and "DOWN" over-performance vs. $SPY (hedged)
4. Long and short to capture nominal performance of both UP and DOWN portfolios.
5. Purely short "DOWN" portfolio.
Your comments and participation are welcome.
Please review our brochure available on our homepage at https://www.chicagoquantum.com for more information on our fees and services.
Results from our March 13 Run
Chicago Quantum Net Score Results
Monday, March 14, 2022 (market open) - Thursday, March 17, 2022 (~Noon ET)
By: Jeffrey Cohen, President and Investment Advisor Representative
On March 13, we published a BLOG post that gave the ‘best’ or most efficient portfolio we had found using data from March 11, 2022 market close. That is an UP or long portfolios.
We also identified a 12 stock UP portfolio which we did not publish, that had a similar (but very slightly less efficient) score.
We also published two stocks which individually are the least efficient stocks, which would be DOWN or short portfolio.
UP (5 stocks): +13.57%
UP (12 stocks): +13.95%
Down (2 stocks): +0.93%
This is significant performance of our model during an active, FOMC week.
For more information, visit our website at https://www.chicagoquantum.com.
US Advanced Computing Infrastructure, Inc.
You can find the BLOG post by visiting our website, ‘Research’ tab, first menu ‘Today’s Insights from CQNS.’ Our brochure is available from our homepage.
Stock Market BLOG
President and Investment Advisor Representative