Riskdial again down @ +25. The market under 2864 SPX, stopped people and bounced hard. I still consider 2864 as the swing level of 2019. While above it and while the riskdial holds positive, we are taking a normal pause, backing and filling. But below…different story. These trade talks are causing havoc but the spreads still say it all gets resolved in the end. We will see in the next few days…it will remain very, very volatile until we have a resolution to Chinese trade issue.
A stock to look at today is: UNP (buy on all indicated pullbacks).
We are in Daily & Monthly Risk On, with 40% in equities and rest still invested in TLT.
Odds heavily favor the upside in equities after this healthy backing and filling, should trade issue not overcome 2864 SPX, indicating a deeper pullback.