Euphoric Backdrop…

Fascinating interview on CNBC this morning. CISCO CEO Robbins talking about how people and corporations will keep buying into kind of a climatic euphoric event.

This is probably a good way to look at where the market is at this point. As I mentioned in my blog yesterday, the time to worry about in these markets has been pushed back six months or more, to a time when it is obvious that what has been set in place does not support strong growth or any growth.

As such the overbought situation that developed on Monday will be resolved, I anticipate that the Model will lift all hedges soon as the current back-off finds support.

Update @ 1:10 PM CDT

Take this market for what it is now, the beginning of a whore’s rally, my animal spirits Multiplier Index is breaking out upward into the range that it ran in for the October 2020 to March 2021 period. The small cap/tech ratio, RUT/NDQ is also pointing to this kind of event. The Climate Tech Model pulled 75 % of its hedges this morning and increased its exposure to the Models Climate Tech Stocks.

Interestingly the index of those stock turned positive versus the November 5th level when Trump took office, all the while Trump has bad mouthed them. Apparently, droughts, dust storms, floods, and tornadoes and people who are watching what is happening are the stronger drivers of this sector.