Meta Strategy Trading Portfolio – Probability Map Update.

– Positioning Update Thursday –

An Earthquake Beneath The Surface

Even in non-normally distributed financial markets a 6-sigma event is rare, but last Thursday the S&P 500 fell by almost 1% while the Russell 2000 rose by more than 3,5% after the release of soft CPI data.

A gigantic rotation from leaders to laggards churned beneath the surface.

I anticipate a change in the rhythm of equity markets, which always introduces increased levels of uncertainty, but, for the moment, I have a very clear path forward in my mind.

Unfortunately, within that path the next few weeks are a prime candidate for choppy noise.

The best bet is to reduce positions and use favorable entry points to add long positions opportunistically while the market digests its recent run-up.