Republic Risk: Postcards from San Francisco... and a Housing Stock Back on the Radar

We are seeing the strongest Daily Money Flow Index reading for the S&P 500 SPDR ETF (SPY) since November 2021. That means that price and volume momentum are really strong right now.

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.

This morning, markets are taking a breath from the November rally, giving us a chance for a reality check. The S&P 500 is retesting the 4,500 level. Based on my morning analysis below, the upside for the market is in the 4,600 to 4,650 range.

This is the strongest Daily Money Flow Index reading for the S&P 500 SPDR ETF (SPY) since November 2021. That means price and volume momentum are at fierce levels - so be cautious because the purpose of a market is to …