Still Quad 1-2, cycs and financials leading
+ Video on breakout trading
What we see right now is a classic rotation within a strong market:
On the right lower box, you see the Quad 1-2 stuff which is leading:
Bitcoin, breadth (T2108 —> NYSE!), Copper, Alu, Residential Construction, Trucking (!), Energy (can be Quad 2 and 3!), Value (!), Basic Materials, Building Materials, Computer Systems (only tech that lead last week!), Small Cap Industrials (PSCI), Shipping and Ports, Industrials, Healthcare and Biotech.
+ Gold (which is fine as long other defensive exposures are not picking up).
Quad 1 exposures:
Quad 3 exposures:
Gold and Bitcoin strong, means the market is sniffing out monetary inflation (e.g. deflating of currencies relative to Gold, Bitcoin and certain stocks), refer to Crossborder Capital for details. My best guess is that within this bull market this gold trend will stay strong:
And no, you do not need a real rate tailwind for gold:
https://twitter.com/WarrenPies/status/1772992199715623416
Also, what I am seeing is a lot of trashy stocks getting bids:
This remembers me to November 2020, tech lead out of the covid crash and then cycs and value got strong, while tech consolidated / sailed along + trashy (low book to market is hot right now!) stocks rallied (up until Feb 2021).
Small cap models are doing fine: https://www.portfolio123.com/app/r2g/find?designerId=9856 (bigger cap models are on the way):
All right, have a great time.
All the best and best regards.
Andreas
P.S.: Video on my R&D on breakout / momentum trading: this stuff is new to me (I am a beginner!). I watched 1000s videos, I read a ton of books, but hand on my heart, I did see nothing for myself, it just did not make click in my head.
So, I watched the tape, did a ton of back testing, and now defined my own setup(s) + market environment (based on the Quads) that fits to the setup + my stock selection (that alone gave me a ton of grey hair, lol). Will not jump in with too much capital, trying to get experience and some stats. Here is the video:
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