Republic Risk: Breaching 5%

After two months - as we warned - the U.S. 10-Year Bond has breached the critical psychological level of 5%, a screaming warning about the state of U.S. debt.

Equity Index Strength Signals

RED on the S&P 500 and RED on the Russell 2000

Each morning, we assess the total 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, trade positive sectors, or take inverse positions against indices.

We remain red across all three indices as interest rates continue to rise. Friday has been the best day of the year for the markets. We’ll see if a reversal or squeeze comes later today. We remain heavily in cash or trading energy names.