The theme for today: Good Trader vs. Mathematics, who wins?

Currently, 4 out of the 5 FAANG stocks are in the market LONG, i.e. under BUY signals. Note the little Blue dots furthest right of each chart are the LONG positions (with the exception of Amazon). Also, notice each market has been stopped out at least once over the last 2 months (with the exception of Google). Collectively, without using math, this means predictability has decreased because recently exit trades have occurred, i.e. they have lost the strength of their underlying trends for the time being. This also means risk is relatively LOW on the FAANG because we know that the exit area is near.

We can all speculate as to why this is happening both politically or intuitively. After all, these were the biggest winners since covid began. These stocks are “due to consolidate” their gains. The important point is that the A.I. is catching mathematically what we all feel intuitively. This is exactly why Math can beat Good traders over time. The math is maneuvering and executing similar to the way a good trader would.

I provide this insight into our A.I. to emphasize what iFlip SmartFolios are; An investment platform designed to maneuver around the markets’ ebbs and flows just like an experienced hedge fund manager would. This is totally different than an investment advisor. They ask questions about goals, then drop their clients into buckets of ETFs with no risk management beyond buying low yield bonds. At iFlip, it’s about “the math” (aka artificial intelligence), which is true risk management.

Until next week,

Kelly and the iFlip Team

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