📈 Market Trends & Strategy

  • Expectations are set for $VIX and $SPY in March. 3
  • $SPX has seen a 12-month streak without a monthly decline greater than 1%, marking the longest run since 2017-2018. 4
  • A super parabolic spike in $VIX to 40-60+ (similar to August’s “Yenmaggedon”) would indicate a major market event. 9
  • The current $VIX is 29.49. Historically, 20% of months saw the VIX higher intramonthly, and 7% closed higher. 10
  • Market stress is surging: the spread between average 9-month volatility of S&P 500 stocks and the index’s 9-month volatility is at 18 points, the highest since 2008, having doubled in 2 years, flagging widespread sector stress. 12
  • For non-career traders, buying $QQQ is a solid path to consistently beat the Nasdaq-100 year-over-year. 14
  • $QQQ has historically touched or traded below its 200-day moving average in 23 of the last 25 years (92%), suggesting a high probability of this happening again, being less than 2% away. 16
  • A VIX reading above 30, as observed in November and April 2025, historically signals strong market rallies. This is a batched accumulation signal, not a liquidation trigger. 21
  • Historically, US equities average gains in the 12 months following a war. Market risks are already priced in; positive news could ignite a rally. With VIX at 30, it’s a time to begin batched accumulation. 27
  • Always average in; avoid going “all-in” given the unpredictability of market tops and bottoms. 28

💡 Economic & Sector Deep Dive

  • Modern defense spending is pivoting towards drones, software, communications, and the scaling industrial base. 8
  • AI investment is fundamentally different from the “LeTV 2.0 + dot-com bubble.” Today’s AI leaders like Microsoft, Google, Amazon boast real revenues and strong free cash flows, unlike the speculative companies of the past. 11
  • Key themes identified include stagflation (triggered by -92K jobs print, leaving the Fed stuck), and specific earnings insights for $AVGO (targeting $100B AI revenue by 2027, supply chain locked through 2028) and $MRVL. 13
  • The US manufacturing sector remains notably weak: ISM Manufacturing PMI Index fell -0.3 points to 47.9 in December (lowest since October 2024), marking the 10th consecutive monthly contraction, with only 11% of industries reporting growth. 17
  • $NVO offers more stability and reasonable valuation compared to $HIMS, which presents higher growth potential but increased uncertainty. 22
  • Weakness is evident in the US tech loan market, with prices dropping -5% year-to-date to 90 cents (steepest decline since the 2022 bear market). European tech loans also saw a -5% fall to 89 cents, a 2-year low. 29

🧠 Investment Philosophy & Conviction

  • High conviction holdings include $TSLA, $PLTR, $SOFI, $HOOD. 2
  • Through over a decade of North American investing and multiple bear markets, fund managers have not advised against selling. 20
  • For long-term investors, 3-5% daily market fluctuations are negligible; they don’t necessitate panic or portfolio adjustments. 23
  • A previous buy call was made on $PLTR at 130. 30