Republic Risk: The Last American Bull Market?

JPMorgan and Bank of America are betting on more than just rate cuts for March 2024, and we start to look for opportunities in energy and financials as earnings season begins to accelerate.

Equity Index Strength Is YELLOW 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.

It’s none more Yellow as we kick off the first real week of earnings season.

The U.S. dollar is at a one-month high as we continue to speculate about the future of these markets. There are real concerns about the plumbing within the financial system right now – and banks are starting to be VERY aggressive in their projections for not only rate cuts but also the prospect that the Fed cools its asset sales to preserve capital in the repo markets. 

As I’ll explain in a moment…