Markets Topping out for a While…

Here is a summary of where the Climate Tech Model is at the moment. It would appear that we are in a market topping formation as of this past week as a couple of signals flopped around during the week but things consolidated on Friday.

By the end of the coming week I anticipate we will be net zero in direction. The Model issued a short hedge signal in SPXS ETF when SPX hit its first quarter objective of 5140 on Friday. Model remains on the sidelines in the Chip and software support areas where long positions were exited on Feb 23.

Market appears to be moving more to enterprise/application, small cap areas. In a fundamental sense, the economy is slowing down a bit here, no crash, just a pause for the political winds to gel over the next four or five months.

Long bonds are something to think about now. See bond chart where we, back on March 15, 2021, drew our forecast bottom envelope in Red. We have posted this many times since as the formation has taken its sweet time in evolving.

While the Climate Tech model does not forecast Gold, Oil, and Bitcoin markets, we do see some market clues from time to time.

Gold, which spun up Friday, probably due to rates declining, is the most difficult thing to assimilate as the cycle peak of July 2020 looms large. Maybe the middle east debacle is about to quiet down.

Oil market appears confused, as it tries to assess whether the economy is stalling or getting ready to run.

Bitcoin run-up hunch, it is probably almost over. This will probably be a true test of the Ponzi framework.