This is the new $SPY Sentiment Signal I created. I will share this chart daily. It looks at 5 areas: breadth, retail sentiment, option positioning, institutional sentiment, and option related metrics (e.g. $VVIX, gamma). It's almost at maximum "Reduce Risk" level. Next, I will
@Jebus____
Pre-smart phone days, I found out my girl was cheating. I moved out (took everything except one table) while she was out w friends and left a printed copy of her and homeboy’s online chat on the table. Play stupid games, win stupid prizes…
I'm going to stick my neck out here and say something crazy, I think $SPY will pullback 6-9% in the next 25 TDs. I still think bulls have the upper hand the next 2-3 days for window dressing/BOM flows ( $VIX model still bearish on vol), but post 7/4 I see a pullback, then
@AlleycatBruno
@antoniogm
I had a friend who earned $250K+ working full time and wanted to drive for Uber at night for entertainment since he had insomnia.
$NVDA saved the market! Ok, probably not, but I plan to happily offload my equities tomorrow morning to those that believe otherwise. Once again, my $SPY 5 Day Risk Model has flipped a hair from sell and my 15 Day Risk Model is back to🐻. Despite the big move up today, whales did
The chart below shows the price of $SPY against my calculation of its relative value. Relative value is calculated based on a correlation between the S&P 500, the US dollar (impacts earnings), junk bonds (highlights recession risk), and 10-year treasuries (used to discount
Bulls couldn't push $SPY and $QQQ past flat/red today so I no longer see a weak Mon. My Risk Models are leaning bullish as are whales (tech whales were wrong today, but their actions were bullish again) and seasonality next week is typically good so my vote is⬆️for now. I'd
Today's small pullback in $SPY was enough to turn off the sell signal coming from my 5 Day Risk Model. Under the surface the market was pretty weak today.
My 15 Day Risk Model seems to already be thinking about a pullback and High Market Risk here, but I think $SPX goes higher.
Back in the early 2000s $SPX was in a downtrend and on the 4th trendline touch it looked like it was going to go down and instead it squeezed the shorts before dropping. History doesn't always repeat, but it sometimes rhymes.
$SPY got pinned this week, but post-OPEX a big chunk of gamma rolled off and a pullback seems imminent. However, w NAAIM in the low 70s, seasonality good, and my model not in the Reduce Risk zone it seems like this leg could make it to 4550 or 4600. $SPX $QQQ
Yesterday I said my $VIX model was bullish on vol and that could imply weakness for markets today/Mon, which is playing out. I still believe there is some strength left in $SPY for Tues/Wed as well as lower vol, however even after today my model is still on bullish vol so
After the expected move higher in $SPX today the market is now ready to continue moving⬇️, though my 5 day sell signal could get stronger. My $VIX model has flipped from being bearish on vol yesterday to being bullish on vol. Notable that whales added heavily to their put OI
Holy dark pool Batman! Top 5 (circled) highest level of dark pool activity in the past year today. These have not been bullish over the past year and hard for me to believe smart money was chasing today. Chart via the great
@squeezemetrics
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🚨3 things for🐻1) Since 1927, 9/13 (Monday) is the worst day of November based on median daily return, 2) after the market closed today, Moody's downgraded the outlook for the US, and 3) there is a DeMark 9 sell signal on $QQQ. Will bears fumble this one? $SPY $SPX $VIX
This is a chart of the $SPY 15 Day Risk Model I share here every day. Not too shabby. If shorting, I think only the most extreme readings are useful. Since stocks go up >50% of the time I have made the "Add Risk" area larger. $SPX $QQQ
#StockMarket
Today was the pullback my $SPY 5 Day Risk Model expected yesterday because today the sell signal has retreated back to neutral territory. This aligns with what I said yesterday, that dips are likely to be bought ahead of OPEX because flows favor the bulls. Today whales dumped a
Friday played out exactly as expected and it's looking like stocks could take a breather early next week given my $SPY 5 Day Risk Model flipped to red. Makes sense given the strong run last week. Looking more long term, my 15 Day Risk Model sees increasing risk, but nothing to
Back in July my $SPY models were screaming sell, $QQQ hit a DeMark 13 on the weekly, and stocks were diverging from global CB liquidity. If you've followed me for a while, you know that I also talked about a July top all through June.
Now things are looking better in the short
Risk of a pullback is very high here for $SPY (see Market Risk chart). My 15 Day Risk Model hit a 100% score again for only the 3rd time this yr (2nd in 5 days). $VIX model a little more bullish on vol than yesterday, but nothing too crazy yet. $QQQ whales are not as bullish on
Back in July this $SPY Risk Model chart drove me to reduce my equity exposure. After today, I'm buying back those same stocks for a lot cheaper. $SPX $QQQ
Reallocated from equities to bonds in my LT portfolio today. 100-day tops most often peak in early Jan or mid-July and the run in tech has been pretty spectacular. Probably a little more gas in the tank but trying to avoid getting slaughtered🐷.
$SPY 5 Day Risk Model is now back
$VIX model was spot on today predicting the vol strength (still elevated for tomorrow though not to the same degree). My $SPY Risk Models have gone from strong sell signals in July (red) to now strong buy signals (green). I'd be surprised if the bounce starts tomorrow, but if it
$VIX was crushed, and $SPY and $TLT rallied as expected most of the day, but traders took the opportunity to liquidate positions in the afternoon (on high volume too). CFTC data released today showed non-commercials and asset mgrs bullish at the 90th percentile based on my own
Planning to share how I construct the squiggly red line in the $SPY chart below this weekend. Will do the same for the shorter-term model, which follows a similar process.
$VIX was up again today as expected✅Tech outperformed and we got the weakness the 5 Day Risk Model expected✅
VIX model sees weaker vol over the next 1-2 days. Whales did not sell puts as they normally do today (I'm sure they didn't know about the downgrade...) on $QQQ or $SPY
Risk of a pullback is very high here for $SPY (see Market Risk chart). My 15 Day Risk Model hit a 100% score again for only the 3rd time this yr (2nd in 5 days). $VIX model a little more bullish on vol than yesterday, but nothing too crazy yet. $QQQ whales are not as bullish on
OPEX is tomorrow and it's finally time for a $SPY pullback. With July being historically strong and funds realizing they can squeeze the JPM collar here (as they did last qtr), hard to imagine the dip not getting bought the last 3-4 days of the month. $QQQ $SPX
So grateful for everyone that has followed me since I started posting to this acct last November🙏You guys/gals are awesome and your interest has resulted in me putting way more effort into this than I had initially planned. I never thought I'd gain so many followers in such a
Well, sell the rip lasted one day😔 $SPY 5 Day Risk Model is now bullish and $VIX model is bearish on vol. Typically, markets top either mid-month or the beginning of the month (i.e. not here). My next potential top date is 8/2 or 8/3. If not early Aug, then Wed of Aug OPEX week.
For the first time since August my $SPY 5 Day Risk Model has fired off a strong buy signal (range is 0-100, 100 being a strong sell and vice versa). DeMark also calling for a reversal on the 4 hr chart. Seasonality isn't great but seems like the downtrend could use a breather.
@kevtradezz
Thanks! Unfortunately I can’t share the secret sauce since I plan to monetize it at some point in the future. I buy 35% of the data that goes into the model, but I’ll share here for free 🙂
The S&P 500 15 Day Risk Model just barely dipped into the Add Risk zone yesterday. Based on prior dips since 2021, it could go further. Seasonality next week is a little better. For more details and information click the link on my profile. $SPY $SPX $QQQ $VIX
Sell the rip plan worked like a charm today💪 $VIX model is more bullish on vol then it has been the past few days and the $SPY 5 Day Risk Model is 1% away from turning red. Dow has now been up 10 straight days. Feels like there will be some weakness Monday, but looking at the
$VIX model got today wrong❌and while whales did sell puts today as expected, the blow from Fitch + ADP was too much to turn the ship around❌. Today's move makes me less inclined to believe stocks pullback Friday. Markets closed right on the largest put wall for $SPY this week
Today's dip was bought, but more weakness on the way according to my $SPY 5 Day Risk Model. $VIX sellers had expected lower vol today, but overnight data out of China threw a wrench in that plan. Despite market weakness vol sellers almost tipped the VIX into the red by the end of
A thread on how to create a simple quantitative financial model in Excel. Commonly, I approach investing using the scientific method; I observe something, develop a hypothesis, then I test it. So today, let’s look at the following question: does it pay to be a contrarian?🧵
$SPY 5 Day Risk Model flipped to bullish yesterday and $VIX model flipped to bearish on vol✅✅. Also sent out a note before the market open to be bullish on $QQQ today✅. Looking forward to seeing what the model update is for today! $SPX
Since 1985, today is the worst day of September for $SPX, up only ~20% of the time. Good news is seasonality is a little better from here (relatively speaking), with the exception of Monday. $QQQ DeMark sell 13 on the weekly, not looking good for bulls. No 15 TD buy signal yet.
Yesterday when I wrote this daily post I was pretty bullish (especially on $QQQ despite futures looking ugly) for one simple reason: whale option activity. Today the bullish scenario played out for tech and I don't think $SPX is finished moving higher because despite today being
Got the green day on $SPY and lower $VIX today as expected in yesterday's post. 5 Day Risk Model is dead neutral here (15 TDs out still bullish), $VIX model leaning bullish on vol. Too many conflicting signals to have a view for Mon or next few days. I did look at prior Augusts
The $SPY 15 Day Risk Model takes into account movements on $DXY, index options, price, breadth, commodities and various correlations. It's not freaking out the way the $VIX and $GLD did Friday, yet. Feb 2022 was the only similar setup that didn't see price move higher. $QQQ $SPX
$SPY 15 Day Risk Model firmly entered the Add Risk zone last week and returns thus far have been good. However, this bull is now in need of some rest. $QQQ $VIX $SPX
I pay for custom data sets from the exchanges. Reviewing Friday, big money sold into the strength, which is not always the case even on days when market is up >1.5% (for example they bought 1/6 when market was up >2%).
Market dipped yesterday and briefly today as expected, exited my remaining tech puts from Friday and bought the dip (BTD) in $SPY. $VIX was also higher today as my model predicted on Friday, but it's still bullish on vol so there is a chance I may be in BTD mode again tomorrow. 5
Closed my $ES short this morning from yesterday. It was a dumb trade for two reasons 1) 5 Day Risk Model was not a sell (it is now) and 2) seasonality Wed-Fri of this week is very strong, combined w FOMO it was a recipe for disaster. I also knew tech was just getting started
The plans I've posted from the last 2 days have been🤑 $SPY 15 Day Risk Model back in the green after today so that cancels the 15 TD sell signal from yesterday. P/C OI through next week shows put wall at $436 SPY with the big one at $430. 5 Day Risk Model back to bullish, but
$SPY and $VIX down today in line with my model views posted yesterday. Good news for bulls, my 5 Day Risk Model is back in the green so I'm expecting higher prices again. $VIX model still bearish on vol here. Big jump in the 15 Day Risk Model today, will be interesting to see if
$SPY 5 Day Risk Model 100% sell signal from 7/3 paid today (got close enough to my 4380 $SPX target to close out completely). I didn't post anything yesterday since nothing had changed. If there is ever anything new or interesting, I'll post. My $VIX model nailed today but, I was
$SPY 5 Day Risk Model back in bull mode after today's pullback. Also, for the first time in a while, $SPY has clearly entered the Lower Market Risk zone where I like to make long term buys. Currently, $QQQ topped during July OPEX week and $SPX equal weight topped at the end of
Last week I had said that $VIX would remain strong Fri-Mon with $SPY likely being weak, but strength and VIX weakness would return by EOD today (VIXperation) and that’s basically what we got (yesterday was weaker than I expected, but today made up for it).
For tomorrow, the
Both $SPY Risk Models in the green after today, (5 Day Risk Model signal now bullish) and whales seemed to be bullish as well. $VIX model still bearish on vol. I think next move is⬆️.
Reallocated from equities to bonds in my LT portfolio today. 100-day tops most often peak in early Jan or mid-July and the run in tech has been pretty spectacular. Probably a little more gas in the tank but trying to avoid getting slaughtered🐷.
$SPY 5 Day Risk Model is now back
$SPX is due to cool down before likely heading higher Friday or next wk (based on seasonality, model hasn't confirmed yet). $VIX model slightly bullish on vol here supporting my view that a cool off is due.
As posted, sold the $ES 4520 level. Chose 4520 by looking at the
$SPY was up enough today to flip my 5 Day Risk Model from⬆️ to⬇️and get my $VIX model a little more bullish on vol (nothing significant though). At this point all of my signals are pointing to⬇️. However, I think dips continue to be bought and vol sucks wind until after OPEX and
My $SPY models have gone from red to green and are now inching back towards red. 5 Day Risk Model signal cooled back to neutral today. $SPX ended right at resistance and my $VIX model is bullish on vol for tomorrow. For a deeper dive, hit the🔗on my profile. $QQQ
#stockmarket
Yesterday morning I said I was concerned about the number of bearish Twitter polls I was seeing. Today everyone being on one side of the boat didn't go so well (including for me)🤕. Note that a sell signal from my model means it sees a >50% chance of lower SPX prices in 15 days
Thought $QQQ would take a breather today but looks like it will be tomorrow based on today's 5 Day Risk Model reading. On the chart with lots of data, more red =🐻, more green =🐂(excluding SPY ETF column). 32 & 90 day sentiment in Extreme Greed territory. $VIX model is bullish
My $SPY 15 Day Risk Model is bullish, but the 5 Day Risk model has flipped to bearish after today. Leaning slightly bearish tomorrow, hoping for a reset that lets the bulls run free next week. $SPX $QQQ $VIX
$VIX fell today as expected, but markets couldn't pull off a green day today so tomorrow bulls will get their day. NFP tomorrow has been de-risked IMHO by ADP Wed so I expect bonds and stonks to be⬆️and vol to be⬇️. Still sitting on the $SPY $450 put wall with that monster $462
$SPY 5 Day Risk Model implying pullback is imminent here (a bit at odds with my $VIX model), which is what I've been expecting post 7/4. I also don't think it will be much of a move nor will it last very long. Keep calm and vacation on.
@MebFaber
I think what leaves people w a bad taste in their mouth are the wealthy VCs, SPACs, and tech founders that pump and dump on the general public whenever they get the chance. Last I checked Farmer Joe ain’t out there pumping WeFarm, Cornfeed, or Beyond Oats.
We got the strong move higher for $SPY and $VIX crush I expected this morning, however $SPX whales jumped on it as an opportunity to hedge. $QQQ whale action was more bullish, so I expect outperformance there tomorrow. SPY Market Risk Signal getting closer to the Lower Market
Looking out 15 TDs my models don't see higher prices for $SPY here. Added Bollinger Bands to the S&P 500 Market Timing Sentiment Model I shared this weekend, which pulled back just below the upper "Reduce Risk" band today. $VIX model got a little more bearish on vol vs Friday
$VIX up today as expected✅, weakness most of day as well (besides last 10 min 0DTE f*ckery)✅ $VIX model forecasts more vol strength tomorrow. $SPY whales were slightly bearish today and $QQQ whales were slightly bullish. 5 Day Risk Model sees possible weakness (in line w
Made some updates to the $SPY 5 Day Risk Model and it's actually looking more neutral after Friday. $SPY internals were really bad by EOD Thurs, based on RSI of components and % of components down 3 consecutive days of more. Since 2018 there are 8 similar setups. Friday would be
Weak breadth today despite ending green. $QQQ probably takes a breather Mon according to my data, but don't expect it to last ($SPY 5 Day Risk Model is bullish). Looking at the CFTC data release today, asset mgrs continue to get more long $SPX and shorts are beginning to be
August starts next week so let's dive into $SPX seasonality. 3 daily charts shown: daily returns for Aug since 1927, since 1985, and when SPX is up >15% YTD since 1975. Bonus charts: $VIX seasonality and monthly performance since 1928. $SPY $QQQ
#stockmarkets
$SPY 5 Day Risk Model back in the red after today. This week we got the bounce I talked about in the newsletter Sunday in both $SPX and $QQQ. $VIX model was somewhat bearish on vol today, but I still think there is a decent chance of some giveback tomorrow.
We've left the area
$SPY still trading in the symmetrical triangle pattern within the uptrend channel after bumping its head on resistance yesterday. I shared the table of past Sept OPEX daily returns yesterday w subscribers. Kind of a slam dunk set up. To stay up to date, hit the🔗on my profile.
For the first time since Oct $SPY has finally entered my buy zone. However, my 15 Day Risk Model is closer to a sell than a buy so not a buyer yet. $VIX model is bullish on vol given the $SIVB situation and the risk for a big down day on Mon. 5 Day Risk Model neutral, but my gut
$VIX was up today as expected but didn't get much weakness besides a short-lived dip in $QQQ. $SPY 5 Day Risk Model is red, possible tomorrow is a small down day (Dow could use a breather). $VIX model thinks vol goes lower over next 24-48 hrs. Really interested to see what whales
$VIX down today✅ $SPX down small❌. Thought Dow would take a breather today but didn't happen. Even though yesterday was up whales did not add to puts, but today they did and my $VIX model now sees vol going higher (unusual for a fed day). No longer in buy the dip mode after
Choppiness playing out as expected, $SPY bouncing between key levels today, likely more of the same Mon given my $VIX model is now bullish on vol again. Shorted $SPX 4440 for a quick trade today because I thought bulls were getting ahead of themselves (saw too much 4500 and melt
Despite the big move up in $SPY since reaching the Add Risk level in October, there has been no Reduce Risk signal yet (close, not quite). Use link in bio to get updates. $SPX
#stocks
Tuesday's Wed $SPX up, Thurs down call was spot on and so far the $VIX forecast from yesterday is playing out. Yesterday my assumption was short-term vol strength (1-2 days) then vol weakness into Wed VIXperation, but today the VIX model is still predicting strength so maybe
Rather than watch my acct decline for a 3rd day in a row I decided to go for a hike up Camelback Mtn and end the day with some Clase Azul. Started posted to this acct in Nov 2021 and since then I've been right much more than wrong, but I really thought Thurs/Fri would be down
A lot to unpack today. Yesterday I said we got oversold mainly due to non-tech components of $SPX and today the bounce continued on the back of BOM flows and + news flow. $VIX was crushed today and whales took the opportunity to close their OTM puts to the lowest levels of the
$SPY 5 Day Risk Model believes lower prices arrive by later next week. This market doesn't inspire confidence. Last Fri whales were betting $QQQ would fall, but by EOD Wed they had closed half those positions and were selling puts. As of EOD today they are back to being🐻. I made
Lots of charts today. Yesterday institutions leaned heavily into $QQQ hedges, but I didn't mention $SPY hedging because it was at avg levels. After today's big value rally that is no longer the case (see chart of index P/C OI vs $SPX). $VIX P/C OI looks insane, I really didn't
Markets have been strong as expected✅, which I think ends late today or Monday. Still see a small pullback starting Mon or post 7/4, however I looked at the historical odds of a 6-9% pullback from today out 25 TDs and they aren't great. A quick🧵
I'm going to stick my neck out here and say something crazy, I think $SPY will pullback 6-9% in the next 25 TDs. I still think bulls have the upper hand the next 2-3 days for window dressing/BOM flows ( $VIX model still bearish on vol), but post 7/4 I see a pullback, then
I created the initial 15-20 day risk model for $SPY back in 2018 to manage my 401K/stock vests and I’ve been improving it ever since. Glad to hear others have found it helpful!
@SPYSTSignals
I have tried many newsletter subs over the year and this is probably the best I have seen. Called the Oct bottom and have been bullish since then.
Thought $SPY would be more choppy and maybe even red today, but since it was up and I was long, I took the opportunity to sell all those dips I bought back to Mr. Market (see prior post). $VIX model is bearish on vol tomorrow, not surprising. Currently all cash because I'm not
My 5 Day Risk Model has been bullish since $SPY reached the 430 area and fell, but it's been bearish ever since it revisited that same area last Thurs. Looking for an entry given my 15 TD Model is bullish, seems market looking to shake out weak hands. $SPX $QQQ $VIX
Got the little bit of $VIX strength and early morning weakness (more so in $SPX equal weight index) that I was looking for in Friday's post, which turned to strength thanks to Big Tech, in line w seasonality. Breadth today was slightly weaker than Friday and buying in the last