Bid is still under the market

SPY is sustaining a bid at this poing the leveraged "risk-on" is at a premium to the cash index

SPY showing up cheap for the first time in a while

We need to keep this up...and remain discounted to leverage for a while for the rally to remain bid.

Commentary...

Regarding the systems...I have stated over the last few days/weeks, that the systematic outlooks were mixed...meaning some systems have been looking short and some have been looking long. In that kind of situation, I have suggested that commitment to the market in either direction be moderated to manage risks in a way that is constructive. For my trading models, I have reduced size allocations by 50%. This means that we will be able to return to full allocations when the majority of the systems are committed in complimentary biases. In this case many of the RVS systems are looking for downward bias shifts. This is not unanimous yet and tomorrow will be a big tell. If we bounce hard, which is a reasonable outcome to expect, then the mixed bias will continue for a little bit. However, without a sustained move to the upside the long positions that are currently on the table will look for a good bounce for an exit and then the systems will likely turn their attention to the short side.

I will post details as soon as they are available.

On another topic, the Releverage/Deleverage analysis today did an outstanding job of demonstrating commitment to the "risk-off" trade. There were only two times during the day that the market made minor attempts to catch a bid under the risk trade as represented by this tool. I have to admit, I jumped on it when it happened and posted the chart. I did take longs at the support level I indicated earlier...but the market never demonstrated committed bids and premiums being paid for leveraged risk. I will continue to post those charts in the next few days. If anyone is interested in understanding more about them please feel free to comment on this post or contact me directly.

SPY still not finding anything more that little bids...but we are nearing strong levels

SPY FINALLY Gets Cheap (a little)

SPY still not finding much of a bid

SPY Rich but bounce conditions starting to emerge

Systems will not add longs...as seend by the red titel...systems will look for shorts to sell.

I do think we get a bounce from these levels...these particular systems almost never lose on their trades. Also, One thing of  note is that the TNA is now trading cheap vs TZA...so there is starting to be some traction possible for a rebound.

BGU is being sold for a substantial discount to SPY

People are willing to sell leveraged risk at much larger than normal discounts!

BGU is represented by the gray bars...so far today it has been drifting relatively far beneath the SPY cash price and the parity prices that would reflect a balanced market. When people will sell a leveraged instrument at a discount the market is valuing the "risk-off" trade.

This situation is currently on the extreme side...and I would look for some sort of bounce back closer to parity soon.

SPY is expensive

Market Finds a bid

If the SPY can continue to trades at a discount to leverage then there should continue to be a bid under the market and dips may continue to be buyable.

Market still has a bid - but projected close calls for a small pullback

Market Still has a Bid

Market still had a bid despite the pullback