Meta Strategy Trading Portfolio – Probability Map Update.
More Mixed Signals
Last week began with a synchronized sell-off in U.S. stocks, bonds and the U.S. Dollar as international money continued its flight home.
This is an exceedingly dangerous combination that tends to be followed by 3-6 months of volatile market turmoil.
On the other side of the ledger, the Trump Put caused a strong bid for equities, which triggered two strongly positive breadth thrust signals on Thursday – this reliably foreshadows excellent, smooth returns a year later.
So, what are we to believe?
While positive breadth points to a solid lower boundary for the current correction, which renders significantly lower lows a less probable scenario, several conditions still speak against a straight V-bottom.
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