This week we had a slight rise in the risk index.  This was once again due to the fact that Treasury bonds have been so volatile lately which has caused a few of our models to have a bit of a whipsaw.

While the readings have changed a bit, rising from 22.22% to 33.33%, the levels are still fairly bearish.  Remember that the risk index goes from 0-100% with 100% being the most bullish and 0% the most bearish so a reading of 33.33% is still pretty bad.

We could be at a short term bottom or maybe we have already hit “the bottom” but until the market internals improve considerably we won’t be putting on any large trades to the long side.  In fact right now we are focusing a lot more on the short side.

Happy Trading,

The Macro Trader
Dave@TheMacroTrader.com

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