Meta Strategy Trading Portfolio – Probability Map Update.

– Positioning Update Wednesday –

Momentum VS Ominous Breadth

Powerful upside momentum carried the S&P to our initial upside target around 6900 before it consolidated in a tight range for the rest of the week.

Combined with a strong seasonal tailwind this bodes well for the coming 2-3 months, as well as over the long term.

However, a look under the hood of the market during the last days reveals an unusual bifurcation between stocks making new highs and new lows simultaneously.

A closer look at the history of such signals shows that they can be a significant warning, but tend to be several months early.

For our trading positions there is no need to overthink it – simply let them run!