Republic Risk: Record Highs, Record Delusion

We're back at all-time highs as concentration continues into the Magnificent Seven stocks trading at irrational valuations. The melt up continues.

Equity Storm Warning Is GREEN on the S&P 500 and the Russell 2000.

Each morning, we assess the full flows of the market by measuring statistical and technical metrics to determine broader market sentiment and the Equity Strength 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.

We’re back at record highs with a low-volume move. But it’s important to note that funds are starting to short this market at a very high level. Funds crowd into the Magnificent Seven stocks, distorting this market's performance.

The S&P 500 continues to see strong inflows, with the index running well above its 20-day moving average.