May 2022 Recap

This week could be the first of the last 8 weeks that the SPX is going to close above the previous week high. The downside price trajectory have been relevant to historical standards in the last 5 months. Marker participants have been repricing key sectors that are likely not well position for a inflationary environment.

Long Signals – High Volatility

It is relevant to share that many market participants are down for the year. A few of those are down more than 20% mainly because of high concentration. Diversification is a two-edged sword. If you consider that there is a chance that the portfolio might not recover as fast as the market. You might be

YTD Update Spiders

The YTD charts of the Spiders are not helping the overall market sentiment. Only Energy is clearly positive with a 36% however its weight on the SPX is not significant yet. Two of my key systems are Flat and Short as of last week.
Here is an update of my current view and some data I enjoy reviewing regularly. Key mayor index components reported last week. The SP500 had 5 negative consecutive weeks in a row. It closed the month at -8.8% and the year so far it is at -13.3% Tuesday: #GOOG #MSFT Wednesday: #FB Thursday: #AAPL #AMZN