Republic Risk: Inflation Week Begins

We have a very busy few days of data that could make or break this rally. Is it time for a Black Swan trade or can this market continue to rally on optimism in 2024 rate cuts?

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.

There’s a big week of data on the horizon. Markets will continue to pace themselves as Russell 2000 stocks look to continue rallying. Keep a close eye on the technicals for the Russell 2000 ETF (IWM), as the MACD and ADX are both bullish.