07.17.22 | Dark Pools Expert System v2.0

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Imagine

Here is the layout for 16 commodities, each displaying accumulation/distribution flows for the past 3 weeks.

Dark pools transaction volumes account for about 45% of total shares traded.  Frankly, interpreting dark pools short sales data is as much art as science.  For at times, institutions time the market impeccably.  Most of the time, however, institutions buy on the way down and sell into strength, on the way up.  Notwithstanding, this information is invaluable when constructing portfolios that employ tactical asset allocation models.

Accumulating at the writing…

  • Electricity and natural gas:  XEL provides both and has a 10.34% ROE.
  • Grains:  Expect price increases as droughts occur in the face of increasing demand (CORN, WEAT)
  • Lithium:  Demand for EV batteries steadily increasing
  • Copper:  Demand swamping supply and current price extremely undervalued

You get the idea.