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I remember before I built the Similar Set Signal, situations like this would come up (great Quad data), but then Keith would start pushing Quad 4 out of nowhere. It was so confusing because those are two completely different outcomes, and I never knew what to do. Now I can see why he’s saying that, and I simply follow the individual signals so I’m positioned for both.

​Wednesday Oct 28th

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Today AI and Google are down, but I see a strengthening—not a broadening—market. New sectors like XLY, XLF, XLB, and XLP are flipping to new bullish TRENDs and are green today.

VIX

Paired with Quad 2 data still coming for the next few months, and with the VIX again confirming a TREND breakdown, I’ll reiterate that I want more longs than shorts in US equities. That’s exactly what I did, because I can see the full fractal picture and make my own decisions while still listening to commentary from others.

MOVE

MOVE isn’t bouncing off the low end of its RANGE and is sitting at TREND. If peak bond volatility is in and this breaks TREND after the midterms, that’s a bullish equity catalyst.

HYG

Credit still has some work to do (just like MOVE) to become a healthy indicator, but it’s already made a higher low and pushed to TRADE. This was never going to be a straight line.

LQD

Investment-grade credit is much stronger, but I still want to see TREND hold and RANGE get above both TRADE and TREND.

SPY

SPY is holding its bullish TRADE TREND, albeit RANGE is consolidating and sitting in the middle of the RANGE, so the signals aren’t the strongest. It’s only a few days of trading before the midterms, so I don’t expect fireworks in either direction.

QQQ

Nasdaq looks awful here. You can clearly see where Quad 4 is showing up, and it’s very concentrated.

IWM

Small caps are showing strength—not a broadening Quad 4 signal, in fact the exact opposite. I don’t love the bearish TREND, but this is another sign of recovery, not weakening.

Sector Signals

DRAM

You can see signals of Quad 2 strengthening while still being really bearish AI—that’s what the signal is showing me. I’m emphasizing the counter-“Quad 4” view because I used to get really burnt trying to read between the lines without the full fractal math. I never had nearly enough information to make big financial decisions. Now I can see the whole machine fractally, and I offer the same to you via the Similar Set Signal product.

JETS

Jets was another short I put on yesterday, but it’s up on the day with no break in TRADE. I put on more longs than shorts, so I’m just holding this as a hedge.

UFO

UFO was the third hedge I put on, and it’s breaking TRADE. I completely cut this today.

IGV

Big move in software, but it was already at minimum size and I don’t add when TRADE is in the middle of the RANGE unless it’s a new bullish TREND flip. I’m waiting to see if it holds TREND or breaks. I cut the entire position—it still looks fine as of today.

If you want to see my whole playbook and how I use the signal to enter the market, review the free handbook with hours of video here.

XLF

XLF is having a big rip right off TREND—gotta love fractal math. XLF is a Quad 2 position, not Quad 4, as a general gauge for what the market is pricing in.

V


Since XLF is a buy, I went into individual financial tickers, and it doesn’t get much cleaner than Visa. It’s ripping off the low end of the RANGE in a bullish TRADE TREND to perfection.

XLY

Very similar look in XLY (another Quad 2 sector). Were you adding more shorts than longs yesterday as the VIX was confirming a bearish TREND breakdown? I wasn’t.

XLP

Staples was another sector to be adding, and it has anti-beta components that add diversification to the book.

KO

Coca-Cola had the same signal with more volatility to play in that sector.

COST

Same signal in Costco. With the Similar Set Signal, your options for how you want to play it are endless.

IAK

Insurance is another defensive sector that was showing a buy, and it’s up today.

XLV

Healthcare is having a monster move and remains long—the signal never broke TREND after flipping in June.

XLE

Energy is still a long but has a little more room to the downside before I add to my minimum exposure. I have plenty of diversification, so I wasn’t concentrating new longs here.

Macro Markets

DXY

Sell some dollar exposure to add new US equity longs yesterday? That’s what the signal said to do, so that’s what I was doing.

Euro

FX bounce right on cue.

EPHE

Same with the Philippines. Capitalize on winners and rotate to the next play—that’s the fractal process. Markets don’t move in straight lines.

TLT

Good exit in TLT after months of riding that short. Not adding here.

Oil

Oil is strengthening as TRADE falls below RANGE for the first time since September 18th. Bullish oil is a Quad 2 signal, not Quad 4.

GLD

Riding a minimum short in Gold. Remember those Gold bugs trying to call a “bottom” as the signal said exit on September 23rd.

BTC

Bitcoin trying to recover TRADE is a good sign, but as I mentioned earlier, I don’t add when TRADE is in the middle of the RANGE unless it just flipped to a new TREND. I’m holding minimum exposure here in case it wants to rip to new cycle highs. Again, I’m not expecting major moves like that until the midterms are over, or at least until the new Congress has a clear picture of how it’s going to shape up.

Stop guessing between conflicting narratives and getting burnt by incomplete information. The Similar Set Signal gives you the full fractal picture so you can see every Quad, every TREND, RANGE, and TRADE simultaneously—position for both outcomes, make your own clear decisions, and never again wonder what the market is actually pricing in. Subscribe now and trade with the complete machine instead of fragments. Try it today 90 days risk free, why not?

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