Mentioned
State Street SPDR S&P 500 ETF
SPY
4.70 (0.61%)
773.42
773.46
Brian Rapose
Brian Rapose
Spain
3mo
πŸ“ˆπ˜Ύπ™§π™–π™˜π™ π™¨ π˜½π™šπ™£π™šπ™–π™©π™ π™©π™π™š π™ƒπ™žπ™œπ™π™¨πŸ“‰ The market is printing fresh all-time highs, but the cracks are getting harder to ignore. Yesterday, I opened short positions on $SPY (State Street SPDR S&P 500 ETF) and $QQQ. The backdrop simply doesn’t match the optimism on the charts. Oil keeps climbing. This feeds directly into costs across the economy including transport, production, and food. That pressure doesn’t disappear. It shows up in margins and consumer behaviour. Rates are pushing higher too. That’s a direct headwind for the growth-heavy names driving both SPY and QQQ. Higher borrowing costs and stretched valuations don’t sit well together. When money gets more expensive, the market becomes more selective. But the biggest red flag is participation. We’re at record highs with very low volume behind the move. That’s not strength. It’s a sign the move may be running out of energy. From a risk and reward perspective, I don’t see the case for chasing upside here. So I’m positioned for a pullback. Not because I’m bearish on everything, but because the current setup is pricing in far more good news than the data supports. If I’m wrong, the market will tell me quickly and I’ll adjust.
Not investment advice. The author may have financial interests in the mentioned instruments.
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SPY
State Street SPDR S&P 500 ETF
773.26
4.70 (0.61%)
1 Mentioned
State Street SPDR S&P 500 ETF
SPY
State Street SPDR S&P 500 ETF
1 reply
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