Meta Strategy Trading Portfolio – Probability Map Update.

– Positioning Update Tuesday –

Another Successful Breakout

The stock market is taking no prisoners this year as the S&P 500, and even more so the Nasdaq, are running from all-time high to all-time high taking barely a pause for breath.

This year’s specific setup of a liquidity-providing US presidential election year, tailwinds from options markets over a slow summer holiday period, and the sweet carrot of an imminent interest rate cut dangling just before our eyes, leads me to believe that current market strength may very well continue for another month or two.

I anticipate a top that takes some time to build while market strength begins to ebb and warning signs pile up underneath the hood.

The time to to go aggressively short will come: most likely at the end of summer when warning alerts reach a critical mass and stocks finally correct before the election.