I am with you, if it is quants, then a rate hike at the long end...

I am with you, if it is quants, then a rate hike at the long end could have triggered the algorithm into action. However, if I would operate a quantitative system, I would probs not look at ARB, coz as you pointed out selling smallish amounts cause price falls. Better off with largish turnover stocks.

For me, to invest into a company, AT LEAST, 4 criteria must be met to my satisfaction:

1 Do I like the product / service?
2 Could I respect the management?
3 Do I like the balance sheet?
4 Am I positive for the future of the product / service?

These questions must be answered WITHOUT emotion (never love your investment). You will notice that these are qualitative, in the main, criteria. Therefore, I think, investing is an art, and not a science.

Having said that, I do look at metrics, but they can be loose; they vary from industry to industry; they depend in what development phase the company is in, what the technological challenges are, etc. blah blah

I have been managing money since about 1991. I learned a lot and changed a lot. For myself, I have learned, that my entry points are commendable, but my exit points lamentable (that might be the case with a lot of us); which brings me to your key assertion: Valuation. Valuation - in my view - suggests some archimedic solid reference point or marker, i.e. when to buy or when to sell (probably for me more true as to when to buy). I am not convinced about that, myself:

a) I bought BKL at 21.72 and then sold at 30.50. Bought back at 31.50 and sold at 74.49 - on VALUATION. After that it went to beyond 200. ... I should have kept the whole lot

b) I bought A2M at 4.31, then sold at 7.75, then had to buy back at 9.58 - and now I am a keeper

c) I bought ARB first at 15.21 and have topped up every now and then, could have taken a profit. But now I keep and I am up 49% average.

What I am trying to say, valuation has not served me that well.It might be a totally different story for you. I take it in, I consider it, but there is more to the story in investing. ... I became aware of Warren Buffet in 1995, and Graham, Munger, Schloss have done so well for themselves. - But that's them - not me ... I am just the average artist.

Anyway, I enjoy your contributions (mostly), and those of MarsC (whose real name is probably Jupiter)

Cheers