Meta Strategy Trading Portfolio – Probability Map Update.

Going Nowhere Fast

By now, the story is very familiar: The S&P 500 consolidates less than 3% from its all-time high, while chaos reigns beneath the surface.

The rotation is epic with violent moves in many momentum names: Record-steep sell-offs are followed by magnificent bounces.

Sentiment has taken a hit and an increasing number of investors expect a nasty summer decline for stocks.

The thing is: We are already smack in the middle of it.

Cumulated probabilities via many market studies point to the current consolidation to be a healthy breather from an extremely strong momentum rally – in which case deteriorating sentiment is a great sign that the next leg up is near.