The only pair trade to watch.

Energy vs Tech

Last week’s email was straight alpha (see below)

• Energy vs tech is the pair trade to watch. If the market is strong, QQQ>XLE

• If tech and the market rally then watch the USD, commodities and energy fall.

• We like: TTWO, KWEB, LQD, QQQ over XLE, market cap over equal weighted, short USD & commodities. (look at dispersion below)

  

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Now:

• This equity rally can persist ( S&P 4000 again).

• Don’t chase, you should’ve bought 2 weeks ago.

• Sam Bankman-Fried, Elon Musk and Jack Dorsey will bailout crypto.

• The weakness in yields crude and copper shows we entered into the demand destruction phase.

The MOST important chart to survive this market. Study.

CD yields will be close to 5% before you know it. Great

Copper is really weak, showing continued demand destruction.

They are already positioned.

Correlations at 1 have made it tough. But KWEB isn’t listed

Crack spreads are showing a supply shortage in refined products, not in crude.

Don’t regurgitate news you hear like a bird. The XLE topped 2 weeks ago along with those “great dividend ETFs”. Down >20%

Crypto: Sam Bankman-Fried of FTX.

Return always wants its risk payment. NOT INVESTMENT ADVICE