Republic Risk: Bad to Worse

We're seeing a continued rise in selling pressure, and markets are reflecting concerns around higher interest rates and questions around U.S. debt.

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

Each morning, we assess the full flows of the market by measuring statistical and technical metrics to determine broader market sentiment and the Equity Strength 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.

I had candid conversations with my publishing team yesterday, and they asked me to state explicitly what we are doing here. So, I’ll tell you. If you are an investor or a trader - you are witnessing a negative market event if these indicators are red. It could be a liquidity issue, it could be a massive selloff as investors are turning to bonds, and it could be geopolitical. We are seeing huge outflows, where selling pressure outpaces buying pressure - and the result has bee…