Meta Strategy Trading Portfolio – Probability Map Update.

Tuesday Positioning Update & Trade setup cancelled

Growth Scare triggers Liquidity Cascade

The first bout of truly relentless selling since last August has finally come to pass.

Key for my trading approach is to protect capital in such situations, because the real, sustainable opportunity comes after the dust has settled.

As a growth scare is beginning to take hold and sentiment collapses during outright policy carnage of the new U.S. administration, we are in the midst of a fog of maximum uncertainty.

It is very well possible that we will see another substantial leg down after the bounce that began on Friday.

However, equally probable is that the current consolidation box continues to hold and stocks move sideways into March before another attempt to break out to the upside.

Over the medium- to long term, probabilities are in favor of U.S. equities following the successful breakout in European stocks.