Risk-Off Signals Amidst Market Rally

As the market experienced a significant rise on Thursday and Friday, the VIX and US Dollar also demonstrated a similar increase. This serves as a cautionary signal against short-term equity exposure.

• Reversals in both the Dollar and VIX are worth noting.

• Use outsized draw-downs as opportunities.

• Consolidation amongst the gold miners is coming

• The squeeze in energy is near, again. According to Goldman, “Net flow in Energy stocks saw the largest net selling in 8 months driven almost entirely by short sales ranking it in the 99th percentile vs past 5 years”

The market narrative WILL TRANSITION from “inflation worries” to “growth concerns”.

---

Significant Pairs To Routinely Monitor

We will always be updating this chart. An important guide for rates.

Quick reversal in the dollar.

Euro confirming it

Equal weight S&P 500 (RSP) is still the winner vs market-cap weighted S&P

UNH=Weak

The Chinese consumer is cashed up and ready to spend.

True alpha

Return always wants its risk payment. NOT INVESTMENT ADVICE.