CC Simple #3 - Shelf Drilling - The Setup

Valley of despair, where investor psychology is rag-dolled. A rare beauty.

Welcome to CC Simple #3

This is not financial advice, and you should always do your own due dilligence.
Errors may occur.

A Shelf Drilling commentary.

I am a little caught up these days, while letting the volatility play out. But let’s not miss the forest for the trees—especially with SHLF, a case that’s sparking high interest among our subscribers. In this commentary, I wanted to highlight the price action patterns and capital flows around the market, psychology being rag-dolled, interest rates and the set-up the weak economy is providing — unpacking what makes this setup unique and why the current market sentiment might be creating a rare opportunity. Highlighting several key inputs—one of which has been building for nearly a year. This pattern, combined with broader capital flow dynamics, has shaped a perfect “valley of despair,” the kind of contrarian setup where significant opportunities are often found.

I also highlight fresh data from Deutsche Bank’s sector fund flows. It’s revealing a stark contrast. Then there’s Exxon. The big player in oil is showing signs that might surprise you, while the herd exits energy combined with a touch on what the people in the know are doing. With institutional longterm-holders outlook for SHLF, the setup is becoming more clearer. With the current trajectory for oil demand mixed with the realization of the weak economy, rates and what comes after, it is bolstering the structure.

At the same time providing a 15 yr chart for Wall Street analysts earnings projection, highlighting the recent divergence for earnings expectations between large caps and small caps.

This multi-combined-niche-dive into price action, fund flows, the weak economy, interest rates, and sentiment patterns is available exclusively for paid subscribers. Unlock access and join other readers who look beyond the noise to spot potential in markets others overlook. Specifically, focusing on the long-term structural trends — the safety net.

Content; 2,119 words 12,655 characters, 10 charts