ProfitScore Update – January 2025
To the clients and friends of ProfitScore: 2025 Market Predictions: Betting on Gains? Bracing for Volatility? I’ve always been fascinated by economic and market forecasts—and equally struck by how often they differ. In 2022, I conducted a personal project where I compared 100 predictions regarding…
ProfitScore Update – September 2024
To the clients and friends of ProfitScore: At ProfitScore, our trading approach is guided by market Regimes. While various factors influence our specific trading decisions, understanding the market’s current state or regime is a key component in how we position our portfolio. Many of you…
ProfitScore Update – February 2024
To the clients and friends of ProfitScore: Exploring Volatility Asymmetry Volatility is a perennial topic of discussion within financial markets; its asymmetric nature is often overlooked, eluding casual observation. Market reactions to volatility demonstrate an inherent asymmetry: sharp increases in volatility frequently lead to turbulent…
ProfitScore Update – September 2023
To the clients and friends of ProfitScore: The Inverse Dance of Equities and VolatilityEquities and volatility, two vital financial metrics, often engage in a rhythmic dance, moving in opposite directions. Here’s a glimpse into their inverse relationship. The Inverse Tango: Historically, when stock prices (equities) rise,…
ProfitScore Update – February 2023
To the clients and friends of ProfitScore: With the rise in popularity of 0TDE (0 days to expiration) options, investors should be wise about the impact this might have on markets. Remarkably, more than 40% of S&P-related options have a same-day expiry, or 0DTE, according to…
ProfitScore Update – January 2023
To the clients and friends of ProfitScore: January was a good month for both equities and fixed income. After finishing 2022 down more than -18%, the S&P 500 rebounded in January, posting a positive return of 6.3%. Similarly, the U.S. Agg, being down -13.01% for 2022, bounced…
ProfitScore Update – August 2022
To the clients and friends of ProfitScore: As has been previously mentioned ProfitScore has two trading constructs for both our treasury program and our equity program. Specifically for our Equity program, we use two systems, one is for low volatility and one is for high…
ProfitScore Update – July 2022
To the clients and friends of ProfitScore: One of the core tenants of ProfitScore trading discipline is the concept of “market states.” ProfitScore believes that knowing what market state you are in dramatically increases your chance of success. ProfitScore specializes in trading equities and US…
ProfitScore Update – April 2022
To the clients and friends of ProfitScore: Institutional investors know ProfitScore primarily for our US Treasury work, but few investors know about our expertise in trading US equities. ProfitScore has provided equity research and sub-advised equity programs to the RIA channel for over two decades. In…
ProfitScore Update – January 2022
To the clients and friends of ProfitScore: The expectation of heightened volatility for 2022 did not disappoint in January. The VIX rose to just short of 32 in late January, its highest level since January 2021, settling at 24.38 by month’s end. According to weekly data published…