Meta Strategy Trading Portfolio – Probability Map Update.

Sloth Summer

In a rare streak of 10 up-days in a row the S&P 500 raced to a new all-time high last week.

In my model trading portfolio the exposure has switched back to a large long position.

While stocks are extended and we may easily see some downside in the near term, this has now become much less probable to develop into a serious decline.

A slow summer rally with limited pullbacks is likely to be the path forward, as tailwinds for stocks are slowly ramping up – of course, barring unexpected events that overwhelm positive flows.