DC Lite #452

In partnership with

1. Government shutdown. "A shutdown seems more likely than not in our view, but these situations are hard to predict even at the last minute … A shutdown affects only programs funded by congressional appropriations, also known as discretionary spending … defense is mostly discretionary and accounts for around half of total discretionary spending."

2. GLD options. "The $ value of GLD calls-puts spiked. Now is NOT a good time to chase the long-gold trade if you don’t have a long-position already."

3. Sentiment Indicator. "Our Sentiment Indicator, which measures US equity investor positioning, has rebounded to -0.6 this week from its low of -0.9 four weeks ago. None of the nine positioning measures in our indicator are in 'stretched' territory."

4. Corporate insiders. "Corporate insider activity signals a bearish tone, with the Insider Transactions Ratio reflecting both caution and profit-taking behaviors."

5. Global breadth. "Global breadth is not just positive. It is relentless! A 73 day streak of more new highs than new lows marks the strongest run of worldwide participation since May 2021."

ICYMI