Quantmatix reposted this
Inefficient Market Hypothesis - Slow Dissemination of Information and Quantmatix Signal Track Record. The Efficient Market hypothesis proposed by Eugene Fama and almost universally accepted suggests that financial markets are "informationally efficient." meaning that asset prices fully reflect all available information at any given time. Quantmatix proposes that the Signal track record suggests that this is not correct in practice. The Quantmatix Hypothesis is that the only time when markets are efficient is on a Corporate results or Corporate event announcement day when all investors get the same information at the same time. Hershey, United Airlines, Bitcoin are good examples of instruments which triggered Top Quantmatix Positive Signals. Nvidia this week stands out with the Top Quantmatix Negative Signal When the “Smart Money” touches the market, Quantmatix can detect and generate signals. This is the “Quake Map Effect” The history of Quantmatix is filled with instances of Signals being generated before Analysts upgrades and before takeover announcements and prior to major market events such as the “Covid Cluster” end of January 2020 and the Major Market Positive Cluster of Nov 3 2023. The Quantmatix signal track record suggests that investors with the best interpretation of information trigger act and trigger a signal. United Airlines, American Airlines and Alaska Airways recorded a confirmed Positive Weekly “Top Quantmarix” Signals at close of business on Aug 26th. United Airlines rallied by 118% after Sept 2nd. aDelta Airlines at time of writing is +46% peaked at +52%, Alaska Airways peaked +71%. Bitcoin +62% was one of 9 crypto currencies - Bitcoin, Dogecoin, Shiba, Near, Litecoin, Ethereum, Internet Computer, File coin, The Graph which generated “Top Quantmatix” Signals on September 23rd 2024. The news that week was Fed rate cut which positively impacted Crypto and Kamala Harris positive comments on crypto. Hershey, United Airlines and Bitcoin generated the Quantmatix Highest Conviction "Top Quyantmatix" Positive Signals. Nvidia by contrast triggered a Negative Top Quantmatix Signal which confirmed at close of business on December 13 The news that Alphabet launched Willow the Quantum Computing chip which poses a huge threat to Nvidia. Time will tell whether this signal turns out to be the most prescient of them all ! Conclusion - Quantmatix propose that market inefficiencies present opportunities for smart investors to trade on news before other investors. The Quantmatix platform is very efficient at identifying significant turning points in markets and stocks and helping smart investors cover the world to see the best opportunities as they occur. For more information and to see back tests and to discuss any of the instruments identified please contact Liam@Quantmatix.com
