Yesterday was impressive with tech and consumer cyclicals leading the charge. However, we have bumped up against the expected moves already on a Monday. These are important lines and difficult to cross as you know. An interesting strategy for the remainder of the week would be to use the lines as a midpoint, and buy a few standard deviations below and short a few standard deviations above. But progress is likely to be limited for the rest of the week.
I will send out a deeper dive tomorrow, but for now it still makes sense to stay cautious, keeping position size and leverage on the lower end of your trading scale given the context of where we are in the cycles.
A.F. Thornton