Republic Risk: Three Cheers for Lower (Yet Higher) Inflation!

Almost on the mend, today I discuss put spreads (as requested), how so many people missed this rally, and a few familiar faces on insider buying

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 particular 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.

With momentum strong, the market continues to rise. The Russell 2000 pushed to its 200-day moving average yesterday before pulling back. Look for further efforts by small-cap stocks to rebound, drawing some money from the larger equities. We’re also seeing a lot of short covering and dip buying in oil futures and energy stocks ahead of the OPEC+ decision on production cuts for the year ahead.