Republic Risk: Back in the Yellow… Preparing for Red

Plus, there are no 20-day breakout stocks now on our list after the recent selloff.

Equity Storm Watch Is YELLOW on the S&P 500 and YELLOW on the Russell 2000

We’ve seen two sizeable down days in the last 48 hours… and might see a little squeeze today before the downward trend continues. Eight sectors are starting to turn negative, and there are many worries about the state of affairs, with “Higher for Longer” now at the center of the narrative again. I’d venture to say we’re heading Red next week. Yesterday's buying was largely related to NVIDIA, while industrial and cyclical purchases took a hit.

What to Do Today: Hedge. We said to do the same yesterday with the market coming out of overbought territory. As I noted on the over-frequency of my writing, we will have some changes soon to the structure and timing of this letter based on the chatter from my publisher. We need to improve the customer experience. So, I want to prepare you for what comes next on Monday. But when we start actively managing the Model Portfolio in July, we have to have deeper conversations abou…