Republic Risk Letter: Spooky Times at the Treasury

How does another $776 billion in debt sound?

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.

Markets had a snapback rally Monday out of correction territory, as expected. This morning, things are flat as we look to more eye-watering debt, another string of earnings reports, and the start of the Fed’s two-day policy meeting. Just three S&P 500 stocks are up 10% on the week, compared to 19 that are off more than 10% in that time period. All sectors are negative, including energy.