ROTATION: BIG COMMODITY TRADE IS BACK ON

I rotated out of my tech stocks and back into a heavy commodity trade, since that’s all the runners today. It’s possible this is a trap, like so many morning rotations or even ordinary lifts before noon. Nevertheless, I’m making a moderate stand that the commodity trade is back on. I say moderate because I’m 53% cash.

My quant, however, which was rebalanced yesterday is up nearly 5% for the session, due to a very heavy commodity allocation.

The narrative for commodities is a logical one, but the trade was crowded. Since it got crowded, many of the leaders are down 20-30%. Now is a good time to reenter, in my opinion, for the big push up into war.