Nimbus Financial Lab

We are a quantitative research firm developing data-driven trading strategies using company filings and time-series behavior of stocks.

[Nimbus Financial Lab @NimbusFinLab]

When the VIX is high (30+), the next 12 months for the S&P 500 are historically much stronger. Volatility shocks create some of the best long-term entry points.

[Nimbus Financial Lab @NimbusFinLab]

As of 2024, the companies that make up the S&P 500 have reached a record $1.103 trillion in total capital expenditures.

[Nimbus Financial Lab @NimbusFinLab]

As of Q3 2025, the 7 largest contributors to the S&P 500 index have reached $103B in quarterly CapEx, an all-time high.

[Nimbus Financial Lab @NimbusFinLab]

Since the launch of our trading strategy, the Nimbus Algorithm has delivered a significantly stronger performance compared to the S&P 500. Over the same period, the S&P 500 generated a return of 4.97%, while the Nimbus Algorithm achieved a return of 8.40%.

[Nimbus Financial Lab @NimbusFinLab]

The figure below demonstrates that integrating momentum filters may improve timing for value investors. When the 14‑day RSI moves above a specified threshold, the S&P 500 often enters a brief consolidation or experiences difficulty sustaining further gains.

[Nimbus Financial Lab @NimbusFinLab]

Despite the S&P 500’s limited uptick, a sectoral review indicates that the Technology, Financials, and Utilities sectors delivered comparatively robust performance over the week.

[Nimbus Financial Lab @NimbusFinLab]

Despite the S&P 500 finishing essentially flat (+0.01%) this week, we saw a clear rotation under the surface. Tech and energy stocks powered ahead, offsetting weakness in financials and consumer staples.

[Nimbus Financial Lab @NimbusFinLab]

Over the past decade, Information Technology has delivered the highest return among all S&P 500 sectors and with moderate volatility.

Meanwhile, Consumer Staples offered low risk but also low return, while Energy showed high volatility with limited upside.

[Nimbus Financial Lab @NimbusFinLab]

“A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.”

-Burton Malkiel, A Random Walk Down Wall Street (first published 1973)

[Nimbus Financial Lab @NimbusFinLab]

S&P 500’s long-run uptrend tracks rising corporate profits. Both index and EPS plunged in 2008 & 2020 but rebounded fast—and record earnings in recent years have pushed the market to new highs. A key long-term driver to watch.

[Nimbus Financial Lab @NimbusFinLab]

The S&P 500 climbed 3.4% this week, led by Tech and Communication Services. This heatmap highlights where strength and weakness clustered from June 23–27, 2025.

[Nimbus Financial Lab @NimbusFinLab]

“Momentum Under Pressure: What Drove S&P 500 Stock Returns During the 2025 Market Dislocation?”

You can access our report via the link below 👇

https://t.co/GbSV722TIQ

[Nimbus Financial Lab @NimbusFinLab]

The chart below illustrates the relative performance of sector indices composed of S&P 500 constituents. Over the long term, only three sectors—Information Technology, Consumer Discretionary, and Health Care—have outperformed the S&P 500 index.

[Nimbus Financial Lab @NimbusFinLab]

The U.S. alone accounts for over half of global equity market capitalization (58.7 T$ or 52.2%).

Top 10 countries together hold 93.6% of the total.

[Nimbus Financial Lab @NimbusFinLab]

The leverage effect is the tendency for volatility to rise more after a price drop than after a similar-sized gain which is a key feature of financial markets first observed by Fischer Black (1976). The chart illustrates this phenomenon using the S&P 500 and its volatility (VIX)

[Nimbus Financial Lab @NimbusFinLab]

Even with robust academic support for momentum strategies, one key concern for practitioners remains: how stocks, especially momentum stocks, behave during episodes of systemic market stress states. A detailed report addressing this will be released this week.