A New Market Leader…
NVIDA which is the second largest stock position in our Climate Change Trading Model is an example of what we have been saying, handling climate change is a “chip” project. There is a lot to figure out and calculate.
Yesterday we talked about the economic model and how stocks don’t necessarily track the economy one on one in the short term, but they do in the long run track.
Here is a little chart I follow to see how stocks are tracking the economy, made into three indexes set to zero at the beginning of 2023 for comparative purposes. One index is stocks, a mix of SPX,NDQ, & RUT. The second index is stocks adjusted for market interest rates, and the third index the economic index we spoke of yesterday.
What I see in this chart is that as the FED tries to trample the economy stocks have tended to do their own thing. For me the key is to watch for the economy index to take its February 2, high. We track this every day. So the model has a core climate change long position, and it will be adding aggressively to those long positions when the economy asserts itself.