SMO Exclusive Market Strength Score -96% and Sector Risk Gauge 2024-08-05 (No New Longs)

Given the action of the past 3 days and the palpable tension in the air here's an update of my market-level gauges after today's action.

(Side note: the Nikkei has rebounded strongly after two pratfall days. Perhaps Wall Street will follow suit. Given the elevated current volatility, a clustering of both big up and down days would not be surprising.)

Market Strength Score

The Strength Score ranges on a spectrum from -100% to +100%. When it is positive, no new shorts. When negative, no new longs.

The current reading is -96%, an elevated reading and a dramatic change from just two days ago.

Sector Risk Gauge

The Sector Risk Gauge offers a different perspective on the same topic. This tool cycles clockwise to reflect the ever-changing prevailing risk associated with sectors and their component industries.

These proprietary gauges offer no guarantees.

They offer an objective perspective to measure current market conditions so that un-emotional decisions can be made and repeated regardless of the environment.