Something Wicked is Coming Our Way -- Be extremely careful, says Running Alpha Capital Markets

Running Alpha Capital Markets sees something ominous on the near term horizon for the S&P 500 -- possibly in the imminent future -- could strike at any moment through June period.

This is because, in addition to the underlying instability showing up in the Market-Player Momentum Perception Biases of the Forward Sentiment Jetstream, the Dark Pool liquidity markets are interacting with the Lit public exchanges in a very unusual way --

the Smart Real-Money Institutional Buyers that have been holding the market up for months have pulled off a disappearing act today at historic speed and magnitude.

This would not be such a problem if it were not for the S&P 500 being near local high ground on a day where both the positive gamma positioning and underlying price action of the broad based equity index are moving higher.

This sharp divergence in cross market action of investors and market dealers on dark and lit markets, is creating a precarious market condition.

Buckle up! -- especially given that highly concentrated positions in only a few euphoric tech stocks are holding off our fragile market regime from transitioning to panic.

The tail-risk threat can get very ugly any moment as we progress through June. There is always the danger that if there is a near term liquidity freeze, correlations can suddenly go to near one. Not withstanding intra-day volatility, it is possible that a few of the tech stocks holding up market can push higher for a few days, but as we push through June into the first week of July, the asymmetric downside volatility will have its turn on many areas, even if for brief moments.

So, stay tuned for updates on when markets will be turning antifragile again. Be very careful for now and tread lightly.

Moreover, US bank deposits outflows are re-accelerating as US Money Market growth is increasing again -- by the tune of near $45bn into the week ending May 24th. This could amplify market pressures,

but in our years of analysis, Running Alpha has found that a fragile configuration of market positioning histories and interaction effects between dark and lit markets,

combined with the market physics surrounding market structure and action-reaction feedback chains of buying and selling activity, among broad-scale market players, is all that is needed, to set off the toppling of market dominoes. We are in one of those infamous configurations.

So, at the very least, it is time to be nimble and hold back from aggressive purchases until after near or just after first week of July. Be sure to subscribe to this channel for update.

Actionable content and foresights on precision entry and exit campaigns, positioning adjustments, timing windows and visibility into intermarket narratives, and ratio charts and relative strength analysis, surrounding Running Alpha's Forward Sentiment Jet Stream biases as a trade unfolds, is exclusively reserved for premium members of the Running Alpha Trading Box?.

This current update serves to add clarity to the underlying risks that the U.S. broad-based equity market will be facing in the near term -- from late May into early July. Below is a note we recently put out, as it provides context into how this risk-off period will seed the energy for the next great bull run, into Q4, but not until we pass through the early July period.

Market bottoms in corrections within a secular bullish run, is a process, rather than an event -- so while the indices will likely see v-bottoms and w-bottoms in July period,

it may take a few weeks in July to get sector rotations to complete, and fuel a transition from a narrow market rally to a healthier broad-based turnaround. We expect the speed and magnitude of the rally into Q4+ to be spectacular to observe and participate in.

The above alert adds clarity to the previous news post below, put out by Hoffman Financial Storm Chaser Newsletter

Serving as Global-Macro Strategist, Industry Rotation Analyst, and Financial Research Architect of Running Alpha Capital Markets, KEEP THIS IN MIND.

Although the broad market indices will be under attack with several episodes of heavy selling pressure into the June period and through first part of July ( will keep you in the loop as we approach early July for market tells of a turnaround ),

Silver and select silver equities will see a huge bounce through Q4, so buy into any intra/inter-day weakness into this period.

With perceived uncertainty now rising, especially as it reaches peak uncertainty in early July,

silver will start catching a bid, through Q4; so take advantage of any short-lived weakness inside this period, because particularly from July onward, everything will be melting up and joining the party.

The rising uncertainty and perceived variance around uncertainty, especially as we approach peak uncertainty into early July,

will see stormy skies with broad markets capitulating in an environment of increasingly negative market dealer gamma and dark pool smart-money buying activity, which will seed the market for sunny skies from an unusually quick recovery --

first with huge short covering rally, followed real-money buying from diverse market players, including value, momentum, growth, and trend-followers --

to persistent new heights through Q4 period, as per my trading market commentary in the current edition ( May 15th ) of Hoffman's Financial Storm Chaser Newsletter.

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Past performance is not necessarily indicative of future results. This website provides only training and educational information. And by accessing any information of the Running Alpha Investments, Inc. site you agree to be bound by the terms of service and acknowledge the risk of trading as discussed below.

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The analysis and employees or affiliates of this Company may hold positions in stock, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities , futures, derivatives, or currencies and commodities.

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