Attempt at Navier Stokes passes the smoke test:
∂t u + P[(R u · ∇)u] = νΔu
∇·u = 0
With R required to:
preserve real fields
preserve divergence-free fields
remain bounded
keep Ru divergence-free
stay close enough to identity for known limits
PSI appears to be a market-state instability metric rather than a directional indicator. In U.S. equities, elevated PSI predicts positive future returns, particularly among weak-momentum stocks. In cryptocurrencies, elevated PSI predicts negative future returns. This suggests PSI measures transition-state intensity while the direction of resolution depends on the underlying market structure.
PSI appears to be a genuine short-horizon stock-selection signal. The strongest evidence is the 5-day fixed-hold strategy, which achieved a 22.3% CAGR and outperformed 99.42% of random portfolios in a 10,000-run Monte Carlo test.