It’s Happening..

While there will be a lot of pushback, in terms of long-term direction, today’s employment report and yesterday’s GDPnow estimate for the second quarter at 2.2 percent are adding a push to stocks. This push has been almost a year in making and I view as an early start to a growth movement.

A few highpoints:

  1. We continue to view our Climate Tech model’s speculative position in 3X leveraged ETF TNA as having a place, it is up 7.3 % for the day at the moment.
  2. The Base Climate Tech model positions in Chips, EV, Solar, and Biotech remain out long-term emphasis.

Update at 1:30 PM CDT Summary, here is a deeper look at some bigger factors as I don’t think we are quite out of the woods in terms of dealing with the recession talk scenario, there is still a lot of pessimism out there.

Going back to the EVM Index (what we showed on Tuesday morning): There are two components of that index, an input index and an output index which totaled together provide the composite index shown. At this moment the composite index is above the most recent high made in the week of January 30, 2023, however this is because the output side of the composite index is much stronger than the input side. This could be due to GDP numbers which are strong but cannot be included in the index as there are no daily GDP prices that could be input, or it could be because other input factors are dragging their heels.

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