Meta Strategy Trading Portfolio – Probability Map Update.

Overwhelmed by Weakness

The market picture is starting to cloud over. The volatility-based push for stocks that I anticipated for the beginning of last week was very feeble and petered out by Tuesday. On Wednesday, things fell apart and equities went down in a three-day rout.

This has caused a number of indicators to move into the yellow zone: I would categorize these as initial tremors that fall short of outright warning signals as yet.

Despite these signs, the bullish setup that emerged over the previous weeks still remains intact. But, if triggered, these warning signals will make it necessary for me to take a step back and revise my evaluation of the current market.

Flexibility is key!