Pockets of Speculation

The Tape is fine, not great but fine!

It has been a difficult market basically since February 2021.

But as I have written, the tape is fine. Right now, and right now is all that matters. Yes, there are tons of clouds coming, but clouds are always coming.

What matters now is the tape from today. Stay in the now!

What I see is a typical market in a shallow rate of Rate of Change of GDP and Inflation. Everybody seems to be worried, and the positioning is bearish.

My main small cap value momentum reference system is doing fine. It printed three higher lows and three higher highs. It is not blazing because in a blazing market it would explode rapidly to the upside, which is not the case.

And I see pockets of speculation. Just have a look at the uranium and natural gas futures and you can see that there is enough liquidity and hunger for extended bull industry trends in the market.

I am in the process of building a position (still small, will scale in if trends continues) in the uranium market. I do know little about uranium, almost nothing, but what I can see is a ton of speculation running into and a healthy uptrend after a decade long crash in the sector.

Also, small cap runners seem to get a bid here.

I do not expect it to be like from November 2020 to February 2021, but some runners start to be tradeable.

Took an 6k position on $ANY yesterday. Do not get me wrong, I believe this is a pump and dump stock in the long run, but I know the fundamental story of a stock just needs to convince the market participants, thats all that counts. In the end its a perception game.

Coal and Uranium stand out from an industry perspective.

From a tape perspective, such pockets of strength do not happen in a market that is totally weak.

Stocks with good ranking and earnings estimates up had a great day yesterday with over 90% in the green, many printing +10%.

Cot Data still looks o.k. on the russel, fear and greed index is in the red, the economic regime is shallow (which can produce a good enough tape), 30 out of 40 countries I follow have a monthly buy signal, earnings estimates still o.k., and most small cap industry systems look fine.

So, all in all its an o.k. tape, not blazing but with pockets of strengths and tradable in the strongest stocks and industries.

Remember, this can change fast. But stay in the here and now and trade what the market is giving to you. Check the tape at least weekly, if not daily (if you are a full time trader). And change with it week by week and day by day. It took me over 25 years to understand this.

My positions in order of weighting:

TLT

ICL

QRHC

GDP

MG

DLA

TRNS

HCCI

CRAI

HCKT

HSON

MTDR

SIM (just have a look at the eps estimates, blazing!)

SCKT (small cap runner)

ANY (small cap runner)

URG (uranium)

ISENF (uranium)

CCJ (uranium)

LMRXF (uranium)

FISOF (uranium)

Good luck and have a great day!