Strategy time…

The comments from September 6 stand. This is a time of base building for small cap and Climate Change type stocks.

On the other hand, one has to keep in mind that the market has a huge overvaluation problem. This overvaluation is very apparent in the S&P 500, and Nasdaq 100 stocks to the point that we think it will be very difficult in the next couple of months for the market to make new highs.

Our Climate Change Model advocates being long chosen climate change stocks and protecting those positions with Inverse 3X ETF’s. like SPXS or SQQQ. It advocates face value protection, so if you have $ 100,000 in Climate Change stocks, the hedge would be $ 16.600 of SPXS and $ 16,600 of SQQQ.

As to the culture surrounding this market, I think this says it best:

This is a Volatility Nirvana. That was what we have seen the past couple of days and probably what we will see in the coming pre and post Fed days as rates are dropped at the height of the election posturing. Probably not a time to advocate out right positions, just jump on your trading intuition and use safe size to trade out of a long/short base.

And then there is this…

Could the Nvidia comeback be a trap? Could it be due to the fact that there is no other story at the moment? Market players are afraid to look towards the future for the next market driver which I think is a real Climate Change infrastructure play. So, we are seeing that the cash is going right back to where it was trapped on June 20th. We will be watching NVDA post Fed cut for clues.