Quad 1-2, but thin and (!) now extended

Rriding my winners, 85% long, not adding long exposure, watching for tactical hedges.

We are traveling to friends over the weekend, therefore and early post this week.

Still Quad 1-2, but again it is thin, and we are extended now:

Only game in town is (bigger cap) tech.

Interest rates and the dollar are curling up, Energy stuff shows some signs of a bottom.

Breadth:

Some CANSLIM / Breakout style traders I follow on X are selling (some or most exposure) into strength here.

My strategy book is doing fine (but not as strong as the QQQs lately, hmmmm….):

My subscribers are doing fine, just an example (new models are on the way) —>

https://www.portfolio123.com/app/r2g/summary?id=1707475

Please use the following link if you want to test drive Portfolio123.com https://www.portfolio123.com/index.jsp?apc=judgetrade [Yes, I am affiliated].

Tactics:

This is not the spot for me to add longs aggressively!

I am long about 85% now.

Look, there are calls when all stars aligned: new (!) Quad 1-2 with a strong strong breadth thrust, positioning heavy to the short side and heavy in cash, X sentiment very bad in a heavy drawdown (> 7-10%).

Now: We have a Quad 1-2, positioning is neutral, X sentiment is upbeat, breadth is weak, the QQQs are overbought: Therefore, my caution.

Gun to my head: Longer term, things are fine for 2024 (Liquidity is up, #secularbullmarketUSA, Inflation is down heavily https://truflation.com/blog/cpi-drops-below-2-fed-inflation-target-reached).

The call for next week is: Quad 1-2, riding my winners, not adding long exposure, watching for tactical hedges.

All right, have a great weekend.

All the best and best regards.

Andreas

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