Market Regime Change
Strategy Update #6 in Calendar Year 2026
The market is currently being shredded by a dual-chokepoint shipping crisis and a tech-heavy index that is dangerously concentrated. We are ditching the narrative-driven mid-caps and pivoting hard into mega-cap liquidity and forensic integrity. This isn’t a “wait and see” moment; it’s a “clean the house before it burns” moment.
In this deep dive:
Why the Size factor is being cut to zero to avoid a mid-cap liquidity trap.
The forensic analysis behind our increased short conviction in names failing the integrity test.
Strategic entries into “Industrial Pragmatism” leaders like Newmont and United Therapeutics.
The mechanical drawdown triggers requiring an immediate 10% tactical hedge.
