Wow what a week, still Quad 2!

On the evening of 03.11.2023 (3rd of November for my European friends ;-)) I wrote:

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“O.k. the Quads changed; we have a Quad 2!”

“Let’s see if this Quad 1-2 holds here and we get a decent trend. As I have written the tape can change week by week, but it also shows longer stretched trends.”

“[…] the Quads are now bullish, Quad 2 is the call, the system is the system, I just rebalanced my portfolio, long 105%, all shorts are lifted!

Strong opinion loosely held for a week is the name of the game.”

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—> I felt very bad writing that call, and I felt very bad at the time to lift all my shorts. Behaviorally that was tough, especially I was very bearish the week before.

Again here is a video explaining the Quads:

Now back to today, what do we see?

Wow what a week, still Quad 2!

Very, very bullish week! Quad 2 in full control.

ARKK strong as hell, IWM very strong, breath is pitch perfect here.

I also like that some Quad3 stuff is joining the party: Steel, Shipping and Ports, Small cap industrials (PSCI), basic materials (recession???) all bullish trends!

IWM (red line is relative strength):

IWM: Above: change of character, see that tight vola contraction last week and breakout this week, look at the chart, you will find no other 2-week behavior during the last year like this!

Same with ARKK:

Breadth:

RSP:

Besides Gold, not much relative strength in Quad 4 exposures:

And yes, the market can be up with a bullish trend in Gold:

CANSLIM traders printing money right now, breakouts working —>

Look, I could print dozens of charts here, but I save us some time ;-) —>

Quad 2 is the call for next week!

Nothing to do, I am staying long, following my system book and watching the tape.
I trimmed some positions that are up more than 40%, but forcing myself to stay as long as possible.

How long does that trend fly? No idea, week by week!

Have a great weekend.

All the best and best regards.

Andreas

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