Shopping list of ETFs and companies

I started writing this post this afternoon and then had to pause to go out for dinner. As I left the restaurant I saw the headline that the Strait of Hormuz has been reopened by Iran. Talks are ongoing and the situation could still change, but this is clearly bullish news and, from the market’s perspective, it effectively closes the chapter on the war. With Brent back at 88 and VIX back to a 17 handle, the TACO trade is now complete.

The US/Iran war served as a reset for positioning in the equity markets and provides a launchpad for a new bull run in equities. Agentic AI is taking off and creating so much demand for compute that LLMs like Anthropic have to throttle users during peak periods to manage the load on their servers. More importantly, users and companies are now spending more money than ever on AI compute while prices in the equity market are only beginning to catch up.

I am seeing a lot of failed topping patterns that undercut key levels during the drawdown and then quickly reclaimed them. Failed topping patterns (such as a head and shoulders top that reverses back into an uptrend) are some of the most powerful setups for a continuation in technical analysis. I will show some of these charts in the paid section, along with the ETFs and companies I want to add to. My plan is to build positions gradually on market pullbacks.

Unfortunately the market has not provided any pullbacks whatsoever. Systematic strategies have relevered quickly - the 5 day increase in CTA positioning is at the highest over the last nine years.