Yellow, Yellow, Red...

We're chopping around, but the flows are out to sea...

A quick note:

There’s a lot of chop in our signals. We have 29 stocks negative on the 5% weekly reading moves with Beta of 1 to 2 and just 17 in positive territory. But the S&P 500 is holding above its 20-day and 50-day moving averages… all on higher than normal volume.

I’d say that a move below those lines would be where we start to see real problems.

The same goes for the Nasdaq. Technology as a sector is negative, but the index is holding above its key averages. As we approach the Third Friday options expiration next week, we should likely see more volatility. The UVIX is starting to break out a bit, which is problematic.

On the Russell 2000, we’re negative, for now, and this is largely driven by tariff sentiment. The selling pressure on the Russell is VERY high, with cyclical like Wayfair (W) leading the downward challenge.

I’m already sitting on a sizable cash pile, and I’m expecting some fireworks in March.

This is one of those periods that we get every six to nine months where n…