The last few weeks have been marked by serious sector rotation. Out of technology and into Consumer Staples, Energy, Utilities and Healthcare. The MAG 7 have been noticeably affected. A week before the US and Israeli attack on Iran the energy sector really took off. The markets seem to have a predictive quality. On a positive note the Israeli TA35 index is up nearly 8.5% in the last two weeks so that tells me that the markets believe that the war will be brought to a forthright conclusion in a few weeks.

As we all know the price of oil is a major contributor to inflation and the only reliable solution is for central banks to increase interest rates. That’s bad for bonds, especially the long end like 20 year bonds. The chart above shows a large symmetrical indicating a large breakout up or down. I think we all know where this is going, down.

I won’t be bragging this week as my performance was not good. On a positive note on the World Asset List, Real Estate(XLRE), Oil and Gas Exploration(XOP), Oil(USO), Agricultural Technology & Food Innovation(KROP), Global Sea & Air Cargo(SEA) are all buys now. AI & Deep Learning(LRNZ) and Coffee(COFF) were all closed.

On the MSCI World Large Cap, all my closed trades were losers, except Lyondell Basil(LYB) Industries was my only positive result with a gain of 27.47%. It was also very noticeable that a lot of the buy signals are in oil producing stocks.

The summers coming and let’s all hope the war in the Iran concludes swiftly. My list of trades are below, all the best, 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.