Where are we now???

A few days ago our Climate Change Model ,which gets its name because a minimum one third of its portfolio is in climate related stocks, flashed a Hedge signal. For our internal use this signal has four levels, C-0 to C-4, the higher the risk, the higher number, and looks at a wide array of sectors.

Here are where things are internally at 10:00 AM CDT today.

XLK (technology) and Mags C-0

SPX (S&P 500), NDQ (Nasdaq 100), RUT (Russell), IXIC (Nasdaq Comp). XLF Financials C-1

DJI (Dow), XLY (discretionary) C-2

DJT (transportations), DJU (utilities) C-3

As we have mentioned previously, a C-4 signal is rare, the 1987 crash was one of the few. It is obvious that a real battle is being seen here, between the AI/Tech components and the real world economy. Stay tuned.

For what it is worth, BCI (Bloomberg commodity ETF), of the sectors we monitor internally, has the highest positive rating. Hence, the inflation component of the economy is real.