Monday, January 4, 2016

M3 Format Changes for 2016....01.04.16

We begin the new year with a 400+ point drop in the DOW, continuing the selloff last week and breaking through significant support levels in the major indices.
A huge overnight swoon in the Chinese markets was part of the catalyst and the Euro markets and emerging markets joined in the selling. Today's close will be an important tell for things to come.

For M3 users there are some changes in the new year. The daily pre-close update has been deleted.
M3 users can run their own pre-close update and assess the most promising risk situation.
An ANALYTICS tab has been added that briefly explains each of the M3 platform elements. This tab is designed to complement the USER GUIDE embedded in the M3 platform software.
M3 INSIGHT will be posted weekly (sometimes more often) and be devoted to getting the most out of the M3 platform, analyzing the 4 modes (momentum, short term, mean reversion and delta neutral), determining the current paradigm and the likelihood of its continuation or reversal.
We'll also look at volatility vs. equity setups in M3 and today a case study has been added that looks at the 4 modes of a VXX/XIV pair.  
This is just a starting point for more VXX/XIV studies and, as can be seen from the stop volatility in the 4 panels today, getting actionable and effective values for the stops is job #1 going forward.