Quad 2, but Quad3 exposures are the strongest right now

O.k., we got a Quad 2:

Watch the stop loss of the Quad 2 call (last week’s low!!!).

Clearly Quad 3 names are the strongest right now.

But remember Quad2 means: growthy tech and higher beta cycs (esp. energy) can be strong at the same time (while interest rates rise!).

The dollar had a super run, so any weakness could bring some strength to stocks:

High beta stuff is behaving not too bad:

My strategy book is doing o.k. too, normal pullback so far:

Especially in € terms nothing to complain:

There is one thread to Quad2. Rising Oil prices!

If Oil stays where it is or goes up further, the fed will need to get hawkish.

Truflation picking up, we need to watch it!

My system book raised some cash this week, I am long 80%.

Liquidity is up until next Wendsday see posts from @RobertPBalan1

Jason Shapiro strong September / October and sell off into year end:

[…]

ETFs Leaders now (with a bullish trend and sorted by relative strength):

Strategies:

• Canslim: the best Canslim traders I follow are careful now, most are in cash (@MissLowRisk)

• If you must be long in retirement accounts, my best Idea is still BRKB, it handled the whole drawdown very well and is reasonably strong in Quad 3 and Quad 2

• I expect small cap value momentum with a growth tilt to stay strong (valuations are historically low relative to its own history).

No touch (Wait!)

• TLT

• Bitcoin (Positioning is terrible, everybody and my friends long!)

• Gold

• Defensive industries (all bearish trend besides drug manufactures

All in all, this is not a go-go market, but not too terrible too. I am waiting for earnings season for more glues!

All right, have a great weekend!

All the best and best regards.

Andreas

P.S. Here is the video explaining the Quads —>

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