Republic Risk: Into Correction Territory We Go

The S&P 500 and the Nasdaq are now in correction territory. It's a good thing we listened to the negative signal in August and avoided this ongoing rate incident. Plus our top energy CEF.                                                                                                                                                                                                                                                                                                                                                                                                                 Forwarded this email? [Subscribe here]() for more [Republic Risk: Into Correction Territory We Go]( The S&P 500 and the Nasdaq are now in correction territory. It's a good thing we listened to the negative signal in August and avoided this ongoing rate incident. Plus our top energy CEF. [Garrett {NAME}]( Oct 30 ∙ Preview   [READ IN APP](   RED on the S&P 500 and RED on the Russell 2000 Each morning, we assess the total flows of the market by measuring statistical metrics on a very specific number of stocks to determine broader sentiment and the momentum trend. When these readings turn red, we focus on cash, trade positive sectors, or take inverse positions against indices. This morning, the S&P 500 is rising as kick off a busy week]( includes a Fed meeting, the October jobs report, and earnings from Apple. As I noted yesterday, seeing a bit of a squeeze this week and additional short covering wouldn't surprise me. Meanwhile, gold prices continue to break out as concerns about global debt and aggressive buying from other central banks push the yellow metal higher. --------------------------------------------------------------- Key Takeaways - Gold will try to close above the key resistance level of $2,000 in a rather stark reversal after testing the year's low at the beginning of October.  - Following disappointing earnings, HSBC ([HSBC]( announced a $3 billion buyback. However, premarket trading remains subdued due to concerns about HSBC’s exposure to China’s property market. - Seven sectors are red, while three are yellow, and one is green. Materials continue to recover thanks to strong moves in the metals. Oil prices dropped again due to continued profit-taking and ongoing factors that I’ve discussed [in the counternarrative](. - General Motors ([GM]( has reached a tentative agreement with the UAW to end the strike. The stock fell on the news. - There’s one energy closed-end fund that is a must-own for the long term. Details below... Keep reading with a 7-day free trial Subscribe to Florida Republic Capital to keep reading this post and get 7 days of free access to the full post archives. [Start trial]( A subscription gets you: The Republic Risk Letter - (Morning) Weekend Postcards (The Week Ahead) and Access to Full Archive An Update When SPY and IWM Readings Turn Positive/Negative   [Like]( [Comment]( [Restack](   © 2023 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()