Meta Strategy Trading Portfolio – Probability Map Update.

– Update Tuesday –

Return Of The R-Word

Two data points towards the end of last week, the ISM Index and the Unemployment Report, re-ignited fears of an incoming recession.

Suddenly bad news is being priced in as bad news, as the FED policy expectations game is ending.

The market is moving towards an important inflection point:

Often a rapidly negative shift in sentiment, positioning, etc. clears the air during a temporary market correction and presents an excellent opportunity when the bull market resumes.

On the other hand, such excellent opportunities occur hand-in-hand with heightened risk of the market rolling over into a recessionary bear market, which should definitely trigger a move to a risk-off position.