Republic Risk: Trucking Canary or Opportunity?

The trucking recession is a big warning sign for the consumer economy... how much money will the U.S. deficit be next year when we go from "good times" to weak times.

Equity Index Strength Is YELLOW on the S&P 500 and YELLOW on the Russell 2000

Each morning, we assess the total flows of the market by measuring statistical metrics on a very specific 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.

Given the comparisons to 2018, the challenge is determining whether this rally is sustainable. The moves of the market yesterday and ticks lower across the energy, and a variety of other sectors suggest it might not be. We’re heading into a tough two-day stretch for the markets (Tuesday and Wednesday), and we’ll see if profit-taking becomes the norm.

I’m not expecting the Russell reading to be positive at open - but we will see how the price action behaves. The Nasdaq is due for a loss after a seven-day win streak… 

Hourly charts (a measurement of intraday momentum)  all turned negative on the SPY, IWM, and QQQ…