Despite pleas of broadening out, the equity market is teetering on a disbroadening.
Here were yesterday’s stats:
* $SPY -0.29%
* $QQQ +0.27%
* $IWM -0.89%
* $RSP -1.22%
To me, key to the broadening-out thesis would be continued strength in financials, which was nowhere to be found:
* $JPM -$8
* $C – $3
* $KRE challenging (to the downside) some important support.
Position: Short JPM (S), C (S)
* And fading it…
I don’t own and am currently short (and have been recently short C, JPM, GS, MS, UBER, NFLX, homebuilders, etc.) some of the most consensus sectors.
I am long some of the most non-consensus sectors.
Consensus Longs:
* Memory: SanDisk ($SNDK), Micron ($MU), Intel ($INTC), AMD ($AMD), Applied Materials ($AMAT) (“it’s different this time”)
* Value Tech: Adobe ($ADBE), Oracle ($ORCL), ServiceNow ($NOW) and Nvidia ($NVDA)
* Tech With Biggest Moat: Apple ($AAPL)
* Value Industrial: Caterpillar ($CAT)
* Best Overall Value: Homebuilders
* Streaming: Netflix ($NFLX)
* Autonomous: Uber ($UBER)
* Entertainment: Disney ($DIS)
* Financials: JPMorgan ($JPM), Citigroup ($C), Goldman Sachs ($GS), Morgan Stanley ($MS)
* Frontier Exposure “For The Long Haul”: SpaceX ($SPCX)
Non-Consensus Longs:
* Cannabis: $MSOS, $VRNOD, $TRLV, $GTBIF, $GLAS
* Private Equity: Apollo ($APO), Blackstone ($BX), KKR ($KKR)
* Consumer Staples: Kimberly-Clark ($KMB), PepsiCo ($PEP), Procter & Gamble ($PG)
Positions:
Long MSOS (L), VRNOD (S), TRLV (S), GTIBF (S), GLAS (S), APO (S), BX (S), KKR (S), KMB (S), PEP (S), PG (S)
Short SPCX (VS), SNDK (VS), MU (VS), INTC (VS), AMAT (VS), AMD (VS), CAT (VS)
I have covered my C ($C) $138.88 (-$2) and JPM ($JPM) $333.95 (-$5) shorts for a small profit this morning.
I plan to reshort on any strength.
Positions: None.
* Trading opportunistically and dispassionately…
Yesterday, among other activity, we added to shorts in $GRNY, $C and $JPM.
I remain bearish.
Today’s ceasefire news will likely provide an opportunity to cover some shorts — something I like to do in a “newsy” backdrop.
I would anticipate reshorting the inevitable rallies than have followed a breakdown in negotitations with Iran.
Position: Short GRNY (L), C (M), JPM (M)
The stock is showing strong leadership with Q2 results out next week.
In the premarket gaps/markups I shorted more C ($C) $145.01 and JPM ($JPM) $340.44 (both had price targets raised by UBS: C $150, JPM $384).
Adding to GRNY ($GRNY) and JOET ($JOET) shorts
Buying MSOS ($MSOS) more aggressively. And individual names.
Positions: Long MSOS L; Short GRNY M JOET S C M JPM M
Here are today’s things:
* Re-shorted indices — $SPY at $748.84 and $QQQ at $722.33.
* Added to $GRNY short at $27.87 — moved to large sized.
* Shorted $JPM $337.81 and $C at $142.90.
* Added to $MSOS at $4.77 and selected individual cannabis shares — $TRLV, $VRNOD, $GTBIF and $GLAS.
Position: Long MSOS (M), TRLV (S), VRNOD (M), GTBIF (S), GLAS (S); Short JPM (M), C (S), GRNY (L), SPY (S), QQQ (VS)
As we extended our lead over the S&P 500, we locked in big gains on several positions, added to new holdings and made other buys.
I am now short C ($C) and JPM ($JPM) against my private equity longs ($BX), ($KKR) and ($APOL)
Positions: Long BX S KKR S APOL S; Short C S JPM S.
The company’s products are a necessary ingredient for AI infrastructure.
