Hooray! Good Grief! You're Kidding, Right?

A few market updates for Republic Risk readers...

Dear Fellow Expat:

A few quick updates…

Russell 2000 Now Has Legs

We’re getting relief on the Russell 2000 ETF (IWM) reading two days into the year. The Russell 2000 pushed back to the 2,250 level and restored a lot of repurchasing pressure into the market.

Energy is having a major role in this reversal. I’ve noted that it’s very important to keep stops tight while we’re still weighing the state of the S&P 500.

Today’s strong moves from the communications and technology sectors is bullish. The Technology ETF (XLK) is holding above that 50-day moving average. I’m unsure if this is a relief rally or capital properly rotated after the recent bond yield uptick.

But this is the first positive daily sign we’ve had in a while. None of the risks have gone away (China, domestic economy, bond yields, unknowns), and we’re still in a very low-volume environment (0.64x relative volume on the SPY).

Bullish?

It looked like we had an issue our on hands…

Federal Reserve reserves just slumped by a stunnin…