Stuff is falling into Place…

This is a late in the day post on what our Model points to as probably a very significant day, significant enough that it signaled to pull all hedges this afternoon. This leaves the long-term Climate Tech long signals in place. This is ironic now that Trump has signaled the all clear on Climate Change.

So as far as things falling into place, the model sees that three waves of exposure have cleaned out the most glaring impediments to the markets. The 30-05 YC Spread is no doubt one thing driving the change signal of the model.

1. First the Model tracked Wave One, the cleanout of the Safe Big stocks starting on October 10 and going through a week ago February 5th. These stocks are: META, ORCL, ANET, NFLX, MSFT, AMD, PLTR, SNOW, CRWD. They declined around 36 %.
2. Next the Model tracked WAVE Two, the cleanout of the Private Equity area, using stocks KKR, BLK, and APO for the index. That period ran between December 10 and today. They declined around 20 %.
3. And finally, the Model tracked WAVE Three, the cleanout of, for lack of a better name, the “X” Guru new economy stocks, the Model tracks 131 of them, for our index we use nine of them, RGTI, QUBT, ASTS, MVST, NUAI, UAMY, OPEN, EOSE, ONDS. This occurred between October 15, 2025 and today, and saw a little over a 50 % decline.
4. You will note that I have not mentioned the core AI stocks, they are in their own world at this point.