Good Morning. Three days of very confusing and frustrating price action has been fun. The reaction in price Monday through Wednesday has been impressive. Impressive in the sense that it is likely more dip buyers versus shorts covering. In that light, I give credit to those who bought the dip but question how much buying they have left.
At this point I simply want clarity. Which I believe we still have in the sense that we have a signal in terms of equity direction. And the model has a 61% efficiency on short signals (79% on longs). So probability favors this signal being valid. But clarity does not mean the model has to be right. It simply means some tradable trend will result so we can get away from choppy price action where asset class correlation is simply non-existent.