SPXT - Manage Risk But Consider An Algo Head Fake

• Last week’s breadth sell signal was fairly convincing and should be taken seriously.
• I recently recommended purchasing shares of grocery giant Kroger, based purely on technical factors, and the stock has taken off.
• Options players continue to tightly hedge against a stock market crash. Simply put, if SPY is trading at 440, then put buyers are lining up at 439. If the market goes to 439, then the put buyers line up at 438 and so on.
• The NYAD, the most accurate indicator of the stock market’s trend since 2016, took a beating last week reversing a long-term uptrend and turning into what for now is a short-term down trend.

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