Meta Strategy Trading Portfolio – Probability Map Update.

– Positioning Update Tuesday –

Time Bomb

It was a long time coming that the time bomb, which was building up in the form extremely leveraged positioning and an unchecked call-buying frenzy, finally exploded with a big bang on Friday.

The indices are now in buy-territory for a green light opportunity, because extraordinarily strong momentum is highly likely to regain the upper hand sooner rather than later.

Volatility may still be with us over the short term, as traders adjust to the shock and effects of forced liquidations spill over across assets.

Sudden volatility spikes are typical late-stage bubble behavior, but I believe that the AI-bubble is still in the process of inflating into a major top over the course of many months.