Republic Risk: Pausing After a Five-Week Run

Markets are taking a pause, while Bitcoin pushes above $42,000. The biggest threat for the markets now is the prospect of valuation compression.

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.

Another day, another small tick down across major indices. Oil prices continue to weaken across the board as markets continue to pivot toward concerns about the broader economy in 2024 and a supply-demand imbalance. This will start to impact production numbers at some point on top of margins. In addition, the 10-year bond is back down to 4.2%.