Republic Risk: And Now… The Fed.

Jerome Powell speaks at 2:30 pm today, and it's a good time to protect your existing profits and positions. Volume remains very low right now at a time that the RSI of the S&P 500 is overbought.

Equity Index Strength Is GREEN on the S&P 500 and GREEN on the Russell 2000

Each morning, we assess the full flows of the market by measuring statistical metrics on a very specific number of stocks to determine broader sentiment and the momentum trend. When these readings turn red, we focus on cash, build trades around positive sectors, or take inverse positions against indices. When it is positive, we focus on short-squeeze stocks, companies with improving fundamentals, and trading/investing around the actions of corporate insiders.

We are green across the board… 

But, we’re seeing some weakness start to arrive largely due to lower volumes. This is a difficult day given that the Fed announcement comes at 2 pm and Powell will speak at 2:30. I’m very cautious in this environment and think it’s a good time to hedge heading into the end of the year. Most hedge funds are in the business of selling to lock in gains and protecting bonuses.