Republic Risk: Third Friday

It's a critical option expiration day, and Fridays have been bullish. We're looking for a little bulltrap ad short squeeze to carry us into the day. Anything else would be very bearish.

Equity Storm Warning Is RED 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.

Markets are coming off a positive day in the tech sector, but this is starting to feel more like a bull trap than a rebound. We’re almost even in terms of buying pressure to selling pressure on the S&P 500. Insider buying remains light, and there is ample liquidity in the system. I think we’ll see a continued dip into the Fed meeting as interest rates increase (10-year bond) and funds continue to take profits from the Q4 rally. We’re still net bullish over the long term, but …