CAVIAR CYCLE // MACRO REGIME ENGINE
Conditional
Reflation Structure
Reflation Structure
MACRO REGIME READ
PRIMARY REGIME → GROWTH-LED RECOVERY (R-B → R-D, narrowing/blending)
Liquidity-driven recovery with increasingly concentrated leadership.
Not broad reflation — participation is deteriorating beneath the surface.
KEY DRIVERS:
• QQQ:SPY + SMH:SPY acceleration → dominant growth / semi leadership
• XLK:XLP expansion → aggressive risk-on vs defensives
• HYG:IEF + LQD:TLT strength → credit remains open / supportive
• XLI:XLU elevated → cyclical bias intact but not expanding
• XLE:SPY + XLE:USO weakness → energy lagging, no inflation acceleration
• GLD:SPY + XLP/XLU weakness → no defensive rotation
STRUCTURE:
→ Narrow leadership (tech / semis dominate)
→ Breadth deterioration (RSP below 13/50)
→ Credit strong, liquidity intact
→ Cyclicals not confirming expansion
RISK CONDITION:
→ Further breadth deterioration OR credit rollover
→ Oil / energy spike driven by Iran conflict escalation
→ XLE / USO sharp relative reversal higher
Cross-asset ratio compression indicates a reflationary environment, but participation remains concentrated in AI and semiconductor leadership. This is a conditional phase of reflation with unresolved inflation pressure and narrow breadth.
CYCLE ALIGNED CAVIAR CRAZY SWING SCAN RESULTS
DEPLOYMENT DASH
PRIMARY STATE → ACTIVE (POST-RESET / NEUTRALIZED EXTENSION)
POSITIONING:
• QQQ ~+1.9% vs 13MA
• SPY ~+1.0% vs 13MA
• IWM ~+1.0% vs 13MA
• VIX stabilizing after spike, trend intact
→ Extension reset achieved via price + time
→ Market transitioned from overextended → deployable range
ACTION:
DEPLOY:
• Controlled deployment active
• Tier 1 pullbacks = primary focus
• Scale entries (no full-size immediately)
TACTICAL STRUCTURE:
• Initial entries near 13MA (starter size)
• Add on hold + stabilization
• Final adds on continuation / trend resumption
AVOID:
• Chasing extended names (>3–4% from 13MA)
• Broken structure (failed 13MA reclaim setups)
• Broad basket deployment without confirmation
DEPLOY (VALID TRIGGERS ONLY):
• Pullback into rising 13MA
• Higher low formation above 13MA
• 1–3 day consolidation near support
• Continued leadership strength (SMH / XLK vs SPY)
RISK TRIGGERS:
• Loss of 13MA across indices (QQQ / SPY / IWM)
• Continued RSP weakness (breadth deterioration)
• Credit rollover (HYG breakdown)
• Sustained yield expansion (TNX continuation higher)
• Oil spike continuation driving macro instability
→ If triggered:
• Deployment pauses
• Reduce exposure / avoid adds
• Expect chop or deeper reset phase
TIER 1 — CORE EXPOSURE (AI / SEMIS LEAD)
Primary beneficiaries of conditional reflation. Structural leadership concentration in high-beta tech.
AVGO · AMD · LRCX · KLAC · AMAT · MPWR · TER · ONTO · MRVL · COHR · CIEN · LITE · SNPS · QCOM · NVDA · AAPL
TIER 2 — ROTATIONAL CONFIRMATION
Cyclicals + financials requiring sustained breadth expansion to confirm regime continuation.
PWR · ROK · CRS · MTZ · ITT · C · BK · STT · XPO · FTI · TDW · FLY · CAVA · JHG · DELL · GLW · WDC
TIER 3 — SPECULATIVE / LIQUIDITY SENSITIVE
High variance assets requiring full reflation or liquidity expansion to sustain momentum.
SRPT · MRNA · BBIO · NIO · ROKU · PLUG · LUNR · WULF · HUT · ALB · SQM · MP · NKTR · NKLA · QS · TLRY