Market Shifts: Equal Weight, Energy & Commodities
Watch out for the rotation out of market cap weighted into equal weight (RSP), energy (XLE) and commodities (GSG).
OPEC will keep a floor on oil.
Bullish Japan/Nikkei and Coupang
Apple releases their VR/AR device today. Meta rushed their new Oculus announcement just last week.
Electrolysis is the process of using electricity to split water into hydrogen and oxygen. So many companies need hydrogen to break down carbon chains and you can store energy in the form of hydrogen. China is at the forefront of this… Here
Keep in mind, the fed doesn’t want to be overly aggressive and break something where they need to then cut rates. We are in the pause camp with no cuts in 2023.
YTD heat map (notice the massive out-performance in mega-cap)
The pain trade was definitely higher. RSP will catchup and close this spread.
Energy will soon pickup.
Commodities are in a strong relative position. Stop at $18.50 on GSG.
Bullish breakout in Japan.
Coupang is still on our radar for an outsized move higher.
“We are at the iPhone moment of AI” - Nvidia CEO Jensen Huang
Utilities are weak.
Important diagram.
Return always wants its risk payment. NOT INVESTMENT ADVICE.