This page has been archived and commenting is disabled.
Bank Of America Quant Update: Buy Into The Euphoria Phase Of The Market
A completely worthless analysis on quant factors from Bank Of America (probably written in conjunction with David Bianco), which concludes that momentum quants have ruled so far this year. What is amusing is that in the very same report, BofA confirms that Momo outperformance such as the one seen currently and evidenced by the appearance of numerous services catering to momo trading echochambers in twitter and elsewhere, is associated with the Euphoria phase of markets, which usually precedes at least a 20% drop. Brilliant.
First, the bank notes that momos have outperformed...

...even though a few charts later BofA confirms that momo outperformance is associated with the euphoria phase of the market, better known as the one where Cramer says buy everything one day, buy gold the next, sell everything the third, all the while theStreet.com is investigated by the SEC.
For those who want to lose about 100 IQ points, click here.
- 4919 reads
- Printer-friendly version
- Send to friend
- advertisements -



You first, BAC.
I wonder if they have been taking advice from Leo?
the pdf link don't work and your servers are getting a bit overloaded.
You guys should put your images and files on extern servers to lighten the traffic dudes.
ZeroHedge... PLEASE upgrade your bandwidth and/or servers. Your site is consistantly unavailable for LONG periods of time anytime significant news breaks out. We love you, we really do, but please upgrade! Also let us know if donations actually make a significant difference in regards to your upgrades, because otherwise we might just assume you guys are all making millions with all your insider info.
Thanks!
I'm sure T.D. is right now as we speak soldering diodes to a Kirby vacuum motor, and hooking it up to an exercise bicycle to keep the show running. This place doesn't exactly have a ton of big corporate sponsor's ads glued all over the page, if you haven't noticed. Personally I'm grateful for the effort. Andrew Maguire blew the whistle on ONE aspect of the B.S. going on right now, and they tried to run him down in the street.
Do you people who keep asking him to upgrade really think he's not aware of the problem? Good effin Christ!
Completly worthless? I'd assume ZH's selectively skipping over good earnings like HPQ is in itself worthless. How about something other than the negative mirror image of CNBC's one sided bs. That's actually a disgrace to CNBC because they actually have two sided coverage. Give us your negative spin on HPQ's numbers and make it a topic. Not to mention every time the wind blows this site goes down.
HPQ? Do you read charts? A big WOW to HPQ for moving the needle $1 on a 28% boost in profits. You can go back to sleep now the market didnt care. HPQ going down now.
I'm fairly new here; what the eff is a momo?
Momentum. It's mentioned on the charts.
Momo:
http://www.investopedia.com/terms/m/momoplay.asp
Investopedia for financial queries. The rest of the answers are on this site.
Or if you're visual you can watch this video to explain it.
http://www.321gold.com/mustread/spotgold500_grrrrrr.html
A momo is what B. H. Obama wears when he gives Goldman Sachs a good one.
Anyone remember a post from last month about Goldman to sell huge blocks of SPY at..... was it $111.30? Any recall ? Thanks I want to watch that depth charge.
Always curious - how does momentum not end up buying after big upticks selling after big downticks??
Surely just a fancy trend following algo, crushed on the turns.