Slope of Hope Blog Posts

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Can Bad Market Breadth Be Good?

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In a word, yes. But first, bad market breadth will likely be… bad

Excerpted from last weekend’s edition of Notes From the Rabbit Hole, NFTRH 815:

A subscriber sent me analysis calling for a “Monster [bullish] reversion trade for the ages” based on the extreme under-performance of the Equal Weight SPX (RSP) to the Headline SPX. The writer’s conclusion is that after such an extreme divergence the spring back in RSP vs. SPY/SPX is strong and the broader market is the place to be for out-performance.

Can’t argue with that.

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