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View from the Edge

Red light spells danger

Although the market has been enjoying a modest rally lately for a variety of as yet unsubstantiated reasons, the Apollo EDGE signal that we have been monitoring intently is the ‘Accelerator short.’ As a reminder to those that know us and as an introduction to those that don’t, here is a brief explanation;

Categories
View from the Edge

Nowhere to run to nowhere to hide

A look at the beta heat map and net beta chart shows only too well the extent of the rotation into higher beta / cyclical sectors lately. The move is now at an extreme relative to anything seen over the past 5 years and on that basis a rotation the other way should be in order and there is justification for that reversal for two reasons associated with the Apollo process.