Pullback in play!
More pullback needed, to see relative strength!
O.k. lets see:
Small cap value momentum took a hit, too early to see relative strength —> points to pullback not over!
Breath is stretched and will trigger a hedge signal today, if we close down —> more downside needed!
Industry Group reaction was good, cycs and tech hold up pretty well. What is even more telling that defensives got sold (if they would have been bought that would be troublesome!)
Higher Beta (Quality names) did not budge at all, good!
SVIX a monster, but we need a vol spike here, nice would be a pullback and then showing relative strength.
All in all, this pullback is not over, worst thing would be if we rally from here. This pullback is needed!
a. relative strength setup
If we pullback hefty and then small cap value momentum, breath, higher beta industry groups, SVIX and cyc. commodities show relative strength we would have a buy point.
Hedges prudent now!
b. pullback with no relative strength
If that is not the case, raise cash up to 90% or hedge your positions.
No stock list today, since we wait to add exposure.
All the best and best regards
Andreas
Disclaimer:
The information on from Andreas Himmelreich / QuantStrike and this video / blog is for information and discussion purposes only. It does not constitute a recommendation to purchase or sell any financial instruments or other products. Investment decisions should not be made with this video, and one should consider the investment objectives or financial situation of any person or institution.
Investors should obtain advice based on their own individual circumstances from their own tax, financial, legal and other advisers about the risks and merits of any transaction before making an investment decision, and only make such decisions based on the investor’s own objectives, experience, and resources.
The information from Andreas Himmelreich / QuantStrike and this video / blog is based on generally available and paid information and, although obtained from sources believed to be reliable, its accuracy and completeness cannot be assured, and such information may be incomplete or condensed. All performance results are hypothetical and the result of back testing only. Out-of-sample performance may be different. No claim is made about future performance.
Investments in financial instruments or other products carry significant risk, including the possible total loss of the principal amount invested. Andreas Himmelreich / QuantStrike and this video / Blog do not purport to identify all the risks or material considerations which may be associated with entering any transaction. Andreas Himmelreich / QuantStrike and this video / blog accepts no liability for any loss (whether direct, indirect or consequential) that may arise from any use of the information contained in or derived from Andreas Himmelreich / QuantStrike and this video / blog.