Meta Strategy Trading Portfolio – Probability Map Update.

Resilience

Both the S&P and the Nasdaq are scratching at their all-time highs, while underneath the surface a stealth correction has hit the majority of stocks: Just about half the S&P 500 members are trading below their long-term trend.

This leaves space for a different interpretation than the obvious bearish argument: The fact that the indices manage to hold up via the strength of a few outperformers shows major resilience.

The best seasonal stretch to own stocks during the four-year, presidential cycle begins this week.

As sentiment and positioning have been pushed significantly lower in the recent consolidation periods, this sets up a green-light opportunity.