Republic Risk: Thanks for the Flu, Wife

I got whatever they had. But we have work to do... A big shift in materials and utilities to negative is very bearish, and we are on full alert heading into earnings season.

Equity Index Strength Is YELLOW on the S&P 500 and YELLOW on 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.

Nothing changed—no need to dig too deep. We have the SPY and the IWM at crucial support levels, and the markets will likely experience another low-volume day ahead of earnings and the inflation readings on Thursday and Friday. If you must trade, use the Deviation Band strategy that we’ve advocated. Buying during the day should only come when we have low volume and are near the third standard deviation level. Do not chase in this environment since funds are using…