SP500: Grind and Fizzles
Whilst one of my trading systems (as displayed) doesn't yet display Exit-Long signals, I have been pre-empting some expected volatility which I perceive can arise due to what can be an lengthy infrastructure Bill process along with the Debt Ceiling fiasco. I detailed this in an earlier post.
Up to this point I have been happy to ignore exit signals based on perceptions of market risk and fiscal support - noting the SP500 index in this model, is assumed to represent a US GDP growth function along with an 'off-risk' overlay.
Where I have low market risk, clear fiscal support (infrastructure bill is committed to), Covid-19 strains (delta strain) understood and the ridiculous debt ceiling overcome, I will assess if it is appropriate to be Long or Longer the broad US market.
I expect the market to pull-back, and will assess being long on limits at lower prices.
#adam-cox
Up to this point I have been happy to ignore exit signals based on perceptions of market risk and fiscal support - noting the SP500 index in this model, is assumed to represent a US GDP growth function along with an 'off-risk' overlay.
Where I have low market risk, clear fiscal support (infrastructure bill is committed to), Covid-19 strains (delta strain) understood and the ridiculous debt ceiling overcome, I will assess if it is appropriate to be Long or Longer the broad US market.
I expect the market to pull-back, and will assess being long on limits at lower prices.
#adam-cox
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