QQQ Rebalancing Day 1
Key Takeaways, is the market going to finally grow up?
Index
I. Forward
II. Reflection
III. Markets
IV. Analysis and Commentary
WIZ CHARTS CHAT
Education & Resources Page
Forward
A really huge day so far in terms of action. Finally, a time where you get to watch me in full action using some brain capacity.
I consider it insane 2 of the best stock plays today were ones we set up into last Friday…or was it Tuesday and it just felt like Friday because of the Holiday. AMZN 0.00%↑ - AMZN and IBM 0.00%↑ - IBM were best in class amongst a sea of red, and they, as you have seen from my papers and the wiz charts chat, are just getting started.
It is just full wiz biz my ability to sniff out the next big moves. I will always be the first to admit I am not perfect, but even for me it is uncanny the large hit rate I have even after all these years.
I think it is mostly to do with my successmanship as I taught you all yesterday. ;) What a funny word - successmanship - I don’t know how some writers are so creative at creating something so originally funny.
Anyways, it feels like right now we are right in step with how the market wants to dance and we are once again locked in on good potential.
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Reflection
I’m just not looking forward to traveling next week. I’m just not.
I’ve been very fortunate enough to have a solid team around me that I can trust to do a lot of my bidding. (haha) So I’ve gotten soft, I admit it. Especially in an age where I can now do most of my meetings over zoom or teams and then shut the world out, it’s perfect. I can’t sustain long endurances of being around mouthbreathing humans. I think out of all the careers I could’ve eventually ended up in, I ended up near the worst in terms of mouthbreathing.
Don’t get me wrong, there are genuinely some fund managers who I think are the most brilliant people I have ever met, but for every 1 of those, there are 100 who are confused a) how a bond works, and b) how you even buy a bond.
If you think I’m joking, I have some fun stories. To be fair, it’s pretty easy in this world to run a small office and just track to SPY as long only, while adding in a few small flairs, or not and just charging points to buy SPY on behalf of clients.
There are very few and rare innovative funds. I won’t even say I’m one of them, I think I just get “it” the game we’re playing with liquidity, and yes a lot of my thinking has been innovative and adopted by a lot of others I know.
I’ll leave the debate of my scoreboard to my actual scoreboard, and let history decide what to do with me. But I’ve been very blessed to have the last decade that I have had, and in particular, the last 4 years have been unreal. I’m thankful for that, and I’m thankful that I have been able to share my gifts in a way that meaningfully helps others.
But back to my rage, I just think it is often too funny when laymen think about a Fund Manager, a CEO, a CFO, a President, whatever, they dream up this image that they must be very smart, hardworking, sharp and get nervous and show reverence.
The hard truth is like any professional field - c-suite’s are often littered with incompetence. Many fall upwards. The good ones throw away their own self importance, don’t use their title as a way to condescend, and take ownership in bringing success. They are often hard disciplined in their own work, very squared away, but easy going in every other regard. Most of us, if I can be bold enough to talk from my own experience, don’t care how the work gets done, just as long as its on time and done well. If I never have an issue, I rather ask everything good? Then spend the rest of the time where we can go golf.
So to have to expose myself to people who I know I can’t be easy going with. That I have to pretend with, doesn’t sit well with my neuroticism. So strap in, I’m sure the quips you’ll get over the next week or so about everything going on will be fun.
Markets
A lot of people appear to be calling for a blow off the top. I think as my paper discussed yesterday we know this is likely not true
QQQ Rebalancing is playing a big role into what we are seeing from today’s market and I think we can discern a few takeaways as to what is happening under the hood. Remember, QQQ uses discretion in their rebalance and do not disclose methods, we will only know how they rebalanced by looking at QQQ weighting next week.