Case Studies
At CrowdThnk, we believe market positioning is one of the most important factors in driving future price movements. These are a few historical case studies in which our positioning data helped to identify profitable trading opportunities, giving our clients a competitive edge in the stock market.
Case #1 – Tesla (TSLA)
- Positioning oscillated significantly between extremes over the past year
- Historical Patterns suggest a high probability of Mean Reversion when Positioning reaches extremes in this stock
![Image not Found](/assets/TSLAPos-a478b93a5fcca0da7f488a8289d5c7e26c3bff0ada1c3fa71675e26e2a90cadd.png)
![Image not Found](/assets/TSLA-c2338c65cba06bd6a973bb5808f3ba87214ef80ee4e282a8eeff70fd2df31600.png)
Case #2 – Amazon (AMZN)
- Long periods of heavily overweight positioning new 9-10 levels
- As a momentum stock, stock price keeps heading higher as strong positioning induces more inflows and conviction
- Historical patterns suggest overweight positioning begets more buying for Momentum stocks
![Image not Found](/assets/AMZNPos-831c7c0ff663a345261aed85d6a52ac1629c74928d104260beea390afe46ff76.png)
![Image not Found](/assets/AMZN-0b36a7a911a477651cbcfa1e39ff6e8c06d320fa6425269cf5a585da664a6589.png)
Case #3 – Netflix (NFLX)
- Elevated and positioning ahead of July 2018 earnings announcement
- Clients hedged and adjusted portfolio by being cognizant of oversubscribed positioning and skewed risk-reward on the event
![Image not Found](/assets/NFLXPos-d443b85e16e1a193aa07d0192b8d4a2ab8bf079dca71f81d9f840422bf9133f2.png)
![Image not Found](/assets/NFLX-bd0c0c6f5c15a24f06982bb0ed99c09fba67ef416024c27480776c3a940b6716.png)