Weakness in Tech/MAG7 flowing into Staples(XLP) and Energy(XLE) stocks.

What makes the above moves interesting is that these are etf’s ie a basket of stocks in these areas. That means that some individual stocks have moved significantly more. I suppose considering the size of the tech space it is bound to have this outsized effect when there is a sector rotation out of this area. It’s also noticeable that there is a sell off in the big banks, JP Morgan, Bank of America, Citi. This looks to be infecting UK and European banks. It’s hard to see where this goes but I believe this is only the start of something very ugly.

So on the Main Asset List you guessed it Consumer Staples(XLP) is now a buy. Also Energy Storage & Pipelines(MPLA), Dry Bulk Shipping(BDRY), Agribusiness(MOO), and the Australian Dollar(FXA).

Bitcoin Mining(WGMI) was closed for a tidy profit of 59.37% and Bitcoin(IBIT) is now a full on short. Whoever said Bitcoin is digital gold as I heard all the talking heads say for years. Its rubbish, you don’t need to be a genius to see that there is no correlation anymore.

Finally, the Expanded Tech. Software ETF, IGV is now a short. The last time this happened was during Covid and the great financial crisis of 2008. I have never seen tech sell off like this on its own. The only other noticeable new short Position is in Sports Betting(BETZ).

France(EWQ) and Turkey(TUR) are now buys.

On the World Cap MSCI Stock list there was a profitable two weeks averaging a 20.20% gain two weeks ago and last week 13.51%. You can see how I got caught badly with the markets rotation into consumer Staples. Check out how I got caught on the wrong side shorting Colgate(CL) and closing my position for a 16.29% loss. However other profitable positions especially in DOW Inc(DOW, +41.63%), Target(TGT, +16.02%), Constellation Brands(STZ, +28.21%) and IDEXX Labs(IDXX, +18.34%) more than made up for this.

I enclose all my trades below. Something’s gonna give here I can feel it, regards, Pearse.

Note:The above trades do not take into consideration dividends on shares or coupons on bonds. This is important because if you short a stock or bond the dividend will be taken from you. Therefore the safest strategy is never to short any instrument only buy an upwardly trending security and simply close your position when this ends. These trades are my view on the market and not me advising you to take any of these positions.  Closed positions have losses and profits listed in percentages. Mainly as a record to myself so I keep honest in evaluating my strategy.
The list of stocks analysed are from the MSCI Large Cap list as of 01/01/2025.