Quad 1-2, bullish...
+ long Vol gets a bid here!
Just a short post this week, working on some R&D, which I will post later (“buy before earnings strategies” + mid to big cap strategies that can be timed well via the Quads…)
All right: we had a little shakeout on macro news, but we stay in Quad 1-2…
Long volatility is showing a bid here, it means nothing for the right tail distribution (e.g. the market still can go up, it can even go up a ton!) but it opens a window to a fatter tail on the left side, e.g. if we tank, we tank big.
I am watching VIXY:
The market is loading up more and more beta:
This is not (!!!) a problem as long the beta loading is going up. The Quads will show when this is not the case anymore! Also, the last move in higher beta loading is the most profitable.
So, the call for next week is: Quad 1-2, I am long about 80%.
· earnings breakouts are doing great; EP Trader have a great season.
· High ranked stocks show a 4:1 edge when they go into earnings right now (4 pop, 1 drops).
· Small cap value momentum strategies are doing o.k. (not outperforming the QQQs, but still fine).
All the best and best regards
Andreas
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