Trading Portfolio May 18

Meta Strategy Trading Portfolio – Probability Map Update.

Brittle Beneath the Surface

In a rally for the ages, the S&P finally closed near its daily low – down over 1% for the first time in seven weeks.

Chances that the first pullback marks the beginning of a consolidation period are solid – a much-needed pause over a few days or weeks before momentum reasserts its dominance.

There are several indications that things have become brittle beneath the market’s surface, which points to a tug-of-war between opposing forces over the short-term.

Such battles usually take the form of some back-and-forth over several weeks, but, given the underlying momentum and immense earnings growth, it could easily be over much faster than that.