First Down Day…

Markets for the past year and for certain the last 90 days since early May, have been extending a stealth rally. It is interesting to watch how this played out on the first down day. The Model’s Climate Tech positions which had to fight for every inch of return over the past year, were down 4.9 % today. The hedges SQQQ and SPXS were up 3.85 % but adjusting for the 3X leverage of the hedge only provided 1.3 % protection against the position. 

The Model analyzes this as more of the same, stock buyers are still trading with the 2021 Bubble Algo. i.e. the crowd has not changed it’s mind on the first down day, they are still buying the crap that will not be part of the next bull move.