Hi YXI friends,

Yesterday, the markets started off poorly, but later improved, ending with SPY and QQQ showing small gains. The human side of YX Insights was worried that the machine didn’t get a chance to incorporate the Moody’s downgrade, but the models were like…”We’ve got this”.

The question has now really becomes, “when pullback?”, as every tiny dip gets bought in this environment.

The power of our systematic signals is that it doesn’t carry any human emotions - the desire to cut winning positions early to bank gains or to hold onto losing positions indefinitely to avoid the pain of crystallising a loss.

Moreover, we don’t just have 1 signal. We have a collection of systematic signals across equity indices, crypto, Mag-7s, bonds, and soon-to-come Gold. This combination is not only powerful in its objective assessment of daily market sentiment, but also in providing the confidence for investors not to second guess themselves and trip themselves up.

Today, we are launching our NVDA systematic signals - you will find NVDA’s signal just under PLTR’s section below.

We currently offer SPY, QQQ, BTC, AAPL, AMZN, MSFT, META, NVDA TSLA, PLTR, and TLT daily systematic signals through machine learning in this service. We combine these signals with our other methodologies in analysing SPY, QQQ, TLT, BTC and Mag-7 in the full daily macro note.

I plan to keep TSLA and PLTR free for everyone, everyday. Please share the newsletter with friends and colleagues who may find it helpful for reference.

Premium subscribers can enjoy daily access to SPY, QQQ, BTC, AAPL, AMZN, MSFT, META, NVDA and TLT signals. We are launching GOOGL signals soon. If you haven’t already, subscribe now to lock in the current price forever. We are raising prices by 33% in June.

We employ individual proprietary machine learning models for each name we cover to outperform the Buy-and-Hold strategy. The model examines the various macro drivers and asset specific factors against an asset’s historical price movements. It is a long-only strategy without leverage.

The unique strength of our offering is the combination of the independent cross-asset signals everyday, to clearly illustrate the market sentiment.

In interpreting the signal, 1 occurs when the model prefers being “position on” and 0 when preferring “cash”. There is no “minimum” holding period when the signal shows 1. The model strategy simply holds the asset until the signal turns to 0. This could be after 1 day, 1 week, or longer.

Currently, the model returns are calculated using the daily closes versus the previous day. In June, we will be moving onto a “buy / sell the market open” strategy for when the signals change.

(Note that the model does not try to beat the S&P 500 or produce absolute returns. Moreover, the model does not know when earnings or news events are. Finally, the model will not be 100% correct in its market prediction everyday (no model can be - please run away if someone claims this).Each model is being improved over time, so the below success rates and back-test results are subject to change. The model outputs are not financial advice and there is no guarantee of future performance.)

Table of Contents

• 1. TSLA

• 2. PLTR

• 3. NVDA

• 3.5 Summary Of Today’s YXI Signals

• 3. SPY

• 4. QQQ

• 5. BTC

• 6. AAPL

• 7. AMZN

• 8. MSFT

• 10. TLT

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. TSLA

The YXI TSLA Signal

(These results are based on historical data and may not predict future performance.)

Strategy Sharpe Ratio: 1.70

Strategy Maximum Drawdown: -33.74%

Buy & Hold Sharpe Ratio: 0.78

Buy & Hold Maximum Drawdown: -73.63%

Note the y-axis below is in log scale to offer a clearer comparison between the two strategies.

2. PLTR

The YXI PLTR Signal

(These results are based on historical data and may not predict future performance.)

Strategy Sharpe Ratio: 1.88

Strategy Maximum Drawdown: -40.61%

Buy & Hold Sharpe Ratio: 0.91

Buy & Hold Maximum Drawdown: -79.14%

Note the y-axis below is in log scale to offer a clearer comparison between the two strategies

3. NVDA

The YXI NVDA Signal

(These results are based on historical data and may not predict future performance.)

Strategy Sharpe Ratio: 2.04

Strategy Maximum Drawdown: -30.50%

Buy & Hold Sharpe Ratio: 1.29

Buy & Hold Maximum Drawdown: -66.36%

Note the y-axis below is in log scale to offer a clearer comparison between the two strategies

3.5 Summary Of Today’s YXI Signals

SPY, QQQ, BTC, TLT, AAPL, AMZN, MSFT, META, NVDA TSLA, PLTR

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