TMI Snapshots: US Defense Equity Sentiment Bottoming; Hydrogen Economy Sentiment Surges Again

Introducing TMI Data Science: Delivering Alpha With Custom NLP-Based Leading Indicators

Managing Director

Elan Gore

TMI Data Science

TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade & traditional media.  Our proprietary software, TMI Machine, is a text-mining platform designed with the buy-side & capital markets professional in mind, text-mining the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income & individual equities.  TMI provides custom leading indicators and systematic trading strategies, operating at the nexus of linguistics & statistics drawing on vast experience in investment banking and hedge fund settings in senior quantitative and fundamental roles.  

TMI Data Science was founded by Elan Gore, an award-winning Senior Global Basic Materials Equity Analyst & China Economist with 15 years of experience in North American hedge funds & institutional managers; and Alessandro Porrino, Ph.D., an Algorithmic Trading Analyst and Programmer with 10 years of front-office experience ranging from complex FX option pricing to auto-hedging strategies at Bank of America Merrill Lynch and Standard Chartered.  Mr. Gore holds an MBA in Finance from New York University Stern School of Business, and Mr. Porrino holds a Ph.D. in Systems Engineering from Brunel University London.

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

<ul>
<li>Our text-mined Hydrogen Economy Sentiment Indicator has trended down to negative territory recently, primarily driven by negative <a href="https://www.smartkarma.com/entities/nikola-corp" target="_blank" data-smartkarma-citation="entities:29029:1" rel="noopener">Nikola Corp (NKLA US)</a>  news flow since the September 10 short-seller report, subsequent CEO resignation and uncertainty on the GM partnership</li>
<li>As the hydrogen economy theme gathered momentum this year, platinum prices rallied along as the platinum story was reframed from "death of diesel" to "birth of hydrogen" despite uncertainties on timeframe and ultimate fuel cell platinum demand</li>
<li>Given the strong performance of pure-play hydrogen fuel cell names (such as <a href="https://www.smartkarma.com/entities/ballard-power-systems-inc" target="_blank" data-smartkarma-citation="entities:25813:1" rel="noopener">Ballard Power Systems (BLDP CN)</a> , <a href="https://www.smartkarma.com/entities/plug-power-inc" target="_blank" data-smartkarma-citation="entities:18244:1" rel="noopener">Plug Power Inc (PLUG US)</a> and Bloom Energy (BE US), we cannot argue that the theme has suffered overall from NKLA's crisis; but in the past 90 days, elevated correlations between platinum and NKLA (78%) are hard to ignore</li>
<li>We suspect closure on the GM/Nikola partnership may provide a jolt to the platinum price in either direction; as the platinum market is thin, key alternatives to the commodity include the Aberdeen Standard Platinum Shares ETF (PPLT US), Sibanye-Stillwater (SBSW US) and AngloPlats (AMS SJ)</li>
</ul><div class="content-highlight"><p>TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade &amp; traditional media. Our proprietary software text-mines the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income &amp; individual equities. </p></div>


Our text-mined Hydrogen Economy Sentiment Indicator has trended down to negative territory recently, primarily driven by negative Nikola Corp (NKLA US)  news flow since the September 10 short-seller report, subsequent CEO resignation and uncertainty on the GM partnership
As the hydrogen economy theme gathered momentum this year, platinum prices rallied along as the platinum story was reframed from "death of diesel" to "birth of hydrogen" despite uncertainties on timeframe and ultimate fuel cell platinum demand
Given the strong performance of pure-play hydrogen fuel cell names (such as Ballard Power Systems (BLDP CN) , Plug Power Inc (PLUG US) and Bloom Energy (BE US), we cannot argue that the theme has suffered overall from NKLA's crisis; but in the past 90 days, elevated correlations between platinum and NKLA (78%) are hard to ignore
We suspect closure on the GM/Nikola partnership may provide a jolt to the platinum price in either direction; as the platinum market is thin, key alternatives to the commodity include the Aberdeen Standard Platinum Shares ETF (PPLT US), Sibanye-Stillwater (SBSW US) and AngloPlats (AMS SJ)
TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade &amp; traditional media. Our proprietary software text-mines the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income &amp; individual equities. 

TMI Snapshot:  Platinum Price Hostage to Nikola?