Institutional investor optimism after Canada and Mexico were excluded from tariffs

Past week recap: A big up week, continuing the recent pattern of abrupt reversals that began with a Feb decline, then recovery, and second decline. This up week reflected a sudden return of institutional investor optimism after Canada and Mexico were excluded from tariffs and response to very good employment numbers that did not also include large wage inflation, suggesting a “Goldilocks” economy – growing but not too fast, i.e. “just right”. So, down-up-down-up goes the broad market – much price movement week-to-week but not necessarily much net change over the 7 week period. Still a very challenging time for investors.

Our gains last week were in long positions, the opposite of the week before. Many new weekly highs. Our short positions were mixed – many also rose, but at least some remained flat and even a few continued downward, resulting in at least some overall net profit.

Until an overwhelming sentiment emerges among institutions, in either direction, lasting more than a few weeks, our net profits will remain constrained as our positions in one direction suffer and offset our gains on positions in the other direction with each abrupt market reversal. Looking forward to a tamer market where positions in both directions move profitably.

Highlights: 8 new weekly highs in long positions. 9 stocks with double-digit long gains:

  • IVAC +10%
  • EVTC +25%
  • FTK +37%
  • BXC +67%
  • PTGX +12%
  • LPSN +24%
  • URBN +66%
  • LQDT +20%
  • PES +24%

No new weekly lows among short positions. No stocks with double-digit short gains.

Congrats to those of you locking in short gain of +36% in GLMD (5 weeks).

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