Pockets of Strength!

Is it 2011, 2000-2003 or something else?

Small Cap Value Momentum very strong:

Nano Caps (124 Stocks) are not showing any type of a liquidity problem in the market —> 1 Year:

Since 1999:

Believe it or not, below Big Cap Growth Compounders are hanging in there, just measure the low from October till today and you see a stronger higher low then on the SPY. Though all other bigger cap systems do not!

Here is the weakness: High Beta Trash (= High Beta with very high valuation and slowing EPS growth), Growth Compounders (FANG type of stuff), Growth in general. Mid-Big Caps.

ADRs very strong:

Short Systems > 100Bil. market cap strong:

If I am lucky, we get a Year 2000, where the SPY was flat, but small cap value momentum had a great year.

The market is flushing out a ton of speculation from 2021. That is a very good thing.

2022 so far looks a lot like 2011. I think we get a consolidation year, flush out the speculation and then have a much better 2023 / 2024.

2011:

If I am lucky, we get a Year 2000, where the SPY was flat, but small cap value momentum had a great year.

2002 and 2003 looked the same.

2002:

2003:

2000-2003:

So it might be 2011, or 2000 and if I am really lucky it is 2000-2003.

I am long around 60% here, 40% Cash.

I know the tape looks terrible, but as long small cap value momentum is acting good, I am long here. The system book I am trading will raise even more cash if it does not find small caps with a great ranking or small caps with a great ranking and positive EPS revisions.

Down 2.5% Year to date.

Good luck!