Wall of Worry...

It looks like this market has solid flows... it doesn't...

Dear Investor,

Just a quick update. It looks like the markets are rallying.

The VIX has moved a little lower, but we’re still on guard. Names like Blackstone Group (BX), ON Semiconductor (ON), and casinos are weak.

Relative volume sits at 0.45x. We’re climbing a wall of worry in a low-volume trading environment. Money is crowding into the usual suspects of the Big Tech names… yet the tech sector is now neutral.

I just urge caution - with the CPI numbers coming this week and concerns brewing about money markets as we approach tax season. I continue to trust the data…

And the data shows a sideways market.

We’ll be back tomorrow with a slew of strong reversion candidates tomorrow using a different detection system. I’ll walk you through it tomorrow - using one of my favorite academic approaches to finding gems under all the rocky terrain.

Stay positive,

Garrett