No. of Recommendations: 4
Drond sent me Claude's first response, condensed a couple of times.
Hoo boy!
That suggested a couple of extra tests to be run, particularly taking into account the difference in spread (friction) and volatility between the periods before and after early 2001. That's the dot-com boom & bust, and when prices changed from fractions to decimal.
Claude complained that we are greatly underestimating the friction in both periods.
It did say
"*Current sector concentration.** The 5/26 and 6/26 top-12 lists are SNDK, LITE, WDC, MU, STX, INTC, AMD, LRCX, MRVL — memory, storage and semicap. This is not a momentum portfolio; it is one industry cycle."Exactly! It is an industry that is currently showing large momentum. That's the purpose, to go where the momemtum is.
We can't help it if QQQ is currently largely in tech stocks.
"QQQ ... tracks the Nasdaq-100 Index, which holds the 100 largest non-financial companies listed on the Nasdaq stock market."
testfol.io: Portfolio Backtester for ETFs and Asset Allocation