Last week, we proposed that removing data is just as important as adding more. This week, we tried to put some meat on the idea by trying basic pattern matching using the Hamming Distance on the VIX index. This reuses an idea from last year where we applied the Euclidean Distance to do the same thing. Hamming Distance works on binary sequences so it runs extremely fast on vectors. So, if you are want a quick and dirty match, this is the way to go.
You can read the post here and R code, for the brave, is on github.
Markets this Week
News of a new COVID variant triggered a broad selloff.
Given Friday’s action in the US where major indices were down ~2.5%, the downward pressure might extend through early next week for us.
Links
India’s population appears to be stabilising (TOI)
U.S. jobless claims fall to just 199,000, the lowest level since 1969 (CNBC)
Subcultures are dead (meaningness)
The Strange Career of Paul Krugman (Tablet)