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This has been a productive week for our firm. Making progress on the technology and the model. However, the market changed behavior this week (actually the past 2 weeks). Small capitalization stocks were significantly more volatile than large cap. Also, we see a dramatic increase in the social media volume around new crypto-currencies. We have a point of view on this. Our firm has made progress in its work: - we have two clients, and have sent a proposal to a potential client - we replaced all of our core technology to run our analysis (we run our analysis in-house and over the cloud). - We wrote a reverse simulated annealer that was the best solver this past weekend. It took the best interim portfolio solution from our weekend run and improved upon it. This is a big deal...we heard that reverse annealing makes the quantum annealing computers run better and now we can recreate that effect classically. - We ran 142 stocks on the D-Wave Systems Advantage 1.1. This is 8 more than before, a new record for Chicago Quantum (and maybe the world). It ran one time...and there is a theoretical maximum of 180 stocks at one time. As always, more work and progress ahead. It was helpful and gave valid, useful portfolio solutions. - We are working on accelerating our code. Yesterday we came up with a means to cut ~ an hour or longer off our large runs. Cannot wait to get that code written, tested and into production. The faster we run, the deeper we can run, and the better solutions we can find. - We are in the process of adding another 774 stocks to our big runs. This would take us from 3,550 to 4,325 stocks pre-validation. This is amazing. Of course, it takes significant work to validate those stocks and the runs will take longer...but now we can look at a whole new stocks exchange. After this, maybe we can go global! Over the past month or so, there has been significant economic news (but little commitment): - the US Dollar strengthened then weakened. - US Govt interest rates (across the yield curve) strengthened then weakened - Covid 19 cases slowed, then accelerated...tied to vaccine availability. Cases up globally (truly a tragedy, especially in India). - the jobs picture looks stronger in the US - the housing market is firm in the US (not enough houses to meet demand) - oil prices are up, then down - inflation is up, maybe... - the US Federal Reserve assets approaches $8 trillion...will they raise interest rates, tighten, and start to taper (...slow the rate of government and mortgage backed bond acquisition which pumps liquidity into the market). Probably not, but the economy is stronger. - President Biden announces a historic tax increase plan, including the highest capital gains taxes in history...but will the US Congress support it? - Doge-coin rose from 1 cent on Jan 28, 2021 to over 40 cents on April 20, 2021, and then fell back to 23 cents this morning. How? Why? We have a point of view. New private tokens, coins and currency are coming and we are learning more. The fall in new currencies may be what is dragging down Bitcoin (under $50k today) as they are exchangeable, and create demand for BTC (cash to BTC to new coin). - the Russians appeared at the Ukrainian border with anywhere from 10k to 100k troops, then are going home without conflict. - the US Federal Government is running a $2.3 Trillion budget deficit for the FY 2021 (ending Sep 30, 2021). We will owe $22.5 Trillion in debt held by the public on that day (projected). - We are long Summit Midstream Partners LLC (SMLP) and NGL Energy Partners LP (NGL) common units. These positions require patience as both are based on belief in business turnarounds (deep value plays). These are highly risky positions and you could lose all of your investment, so please do your due diligence before investing. You could also make 2x to 5x your investment, plus distributions once restarted. This is not investment advice, and we are not investment advisors. Do your own due diligence before investing (long or short). www.chicagoquantum.com https://twitter.com/chicago_quantum Disclosures: Chicago Quantum (SM) is a service mark of US Advanced Computing Infrastructure, Inc., and offers services in the areas of quantum computing and management consulting. For more information and a full disclosure of fees, please visit our website at https://www.chicagoquantum.com. We do our own research and believe all information to be true and accurate when presented. We are not paid to produce these videos or engage in social media. Jeffrey Cohen, President, US Advanced Computing Infrastructure Inc., has active investments in $SMLP and $NGL (long). We are not investment advisors and this is not investment advice. Please see our website (footer) for a full list of disclosures.