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.
