Fragile Bottom…

The dampening of market panic which we mentioned on March 12 has led to a bit of a bounce into the FED announcements and press conference today. It seems that a bit of mild optimism prevails, we will just have to see. I would say that there is a greater than 50 % chance the market takes out the March 11 lows and basis the S&P trades down to 5300 level, not a big deal but it could be unnerving for investors that try to get too optimistic here.

Our Climate Change Model advocates staying long the Climate stocks as Climate is the driver, not Trump or the FED. On the other hand, risk management advocates hedging in the SQQQ, Nasdaq 100 3X Short ETF until things totally stabilize. Stocks like NVDA and TSLA dominate risk profiles at the moment and downside objective on TSLA remains at $ 146 and NVDA $ 54.

Update at 2:10 CDT

Model completed short hedge with S&P at 5710 at 2:05 CDT.