10# Signal 2 Noise

In today’s issue:

1. S2N Updates.

2. Key Performance Wrap

3. A.I. Craze got Crazier

4. China is hurting (a lot)

S2N Updates

A day and a week of complete frustration. I continue to have backend issues, which I am struggling to resolve. Things worked perfectly for 4 months, now new files created are not synchronising with my cloud-based drive and the WordPress media library. The 2 backends are talking to each other; the issue relates to the fact that when there is a file with more recent data, it should overwrite the existing file for the newer one. I will resolve it, but it has been a source of major frustration and so time-consuming.

To add to the frustration, memberships and trials for the different subscription offerings are taking longer than hoped. I outsourced this to someone, and he has not been as thorough as I have asked him to be. There are still issues, but I am hopeful that we will resolve them by the end of the weekend.

Something else came up today. I am getting frustrated with using Colab to power my notebooks. I am using the free version; I have tried the paid version, but still, the mounted drive disengages every 12 hours. This requires remounting and installing libraries on your virtual machine. The processor’s speed is so slow. I guess you get what you pay for, but even the paid version didn’t do the trick. I have decided to go simple and run the notebooks on my local machine. However, this uncovered an issue. I run the notebooks in the UTC time zone. This is important as exchanges and different markets operate according to their local time zones. I am in Australia, ahead of most of the world. If I time stamp charts according to my time zone, I am often on another day compared to the USA. This causes problems. My Colab machine was using a UTC timezone, my local machine therefore causes the notebooks to produce the wrong time. You cannot overwrite your local machines timezone. So it required some edits to the notebooks as you can instruct the notebook to work in a specific timezone. For example its not a major drama, you can use the datetime python library and just call datetime.utcnow() instead of datetime.now(). This is probably a very boring update but I am sure I will look back with a smile one day. 

One thing I know with data analysis is that making sure of the integrity of your data is vitally important.

Performance Review

Chart Gallery

Active Signals

There were more than enough signals generated yesterday. I will spend more time in future letters on this section, where I will bring this important section to life. It is currently just a prompt to do your own homework, but I want to share where the homework has already been done for you.

Economic News Today

S2N Insights

A.I. Craze just got Crazier

The SP500 made new all-time highs yesterday, as did NVIDA.

Feeding into the frenzy was yesterday’s launch by Open A.I. with their latest innovation: text-to-video. From the snippets released, this is definitely a new frontier, which will aid the productivity of content creators. I am quite excited about it from a professional point of view. 

With all that said, I think the hype has driven valuations to unsustainable levels. There will be employment consequences in the short to medium term with the productivity gains from A.I.  The biggest issue I have is what most of the advanced technology is being used for. When I see the world’s focus on projects that have sustainable economic benefits, I will get more excited about it from an economic point of view.

The land of the deflationary sun

Japan has just entered a technical recession and is no longer the 3rd largest economy in the world as Germany overtakes it.

Chinese economy is hurting (a lot)

I want to write about this in greater detail in future letters, but for now, the Chinese real estate market continues to be a major problem. If you look at the Chinese stock market, it has hopelessly underperformed. This is just the market echoing what most of us know: that the Chinese economy is suffering from a major property bubble headache.

There are major consequences to be felt around the world from the pain China is currently experiencing.

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