Trading Portfolio August 28

Meta Strategy Trading Portfolio – Probability Map Update.

– Positioning Update –

The Sentiment Reset.

A 6% S&P500 drawdown was sufficient to completely reset positioning and sentiment extremes.

In the beginning of the month it seemed like nothing could ever derail the fresh “teflon” bull market, but only a few challenging weeks later social media chatter is turning back to doom and gloom.

I would argue that this is an inherent feature of a new bull market: With painful declines in stocks and bonds fresh on our minds, any new weakness quickly turns from golden opportunity to a specter of fear.

To control our emotions a look at cold, hard data can help. There are quite a few new studies discussed today that support the thesis of a benign pullback (i.e. new highs ahead within weeks).

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