Meta Strategy Trading Portfolio – Probability Map Update.

– Positioning Update Wednesday –

Weakness Is Being Bought

The S&P 500 sold off to an important support level, which turned out to be a good spot to add longs as equities bounced back immediately.

Due to extended positioning and growing signs of internal weakness in stocks, I expect such shallow sell-offs to occur frequently during the summer.

In the end, these dips should remain temporary unless events occur that manage to overcome the current slow summer dynamic.

I take the opportunity of quiet markets to refresh a timeless, basic investment concept: How to set realistic expectations for return on capital in trading and investing.