We’re very excited to present our Squeeze Engine, one of the main tools that powers the success of Breakout Multiplier.
Our system is one that’s directionally agnostic. In bull markets, that means having 100% net long exposure for the majority of the stretch.
There are times, however, when we enter extended corrective waves and the market rewards taking shots on the short side. For us, that means buying puts.
Here’s today’s standout:
U.S. Real Estate $IYR is currently exhibiting a Squeeze Score of 96.6 and an even tighter Long-Term Score of 97.9
Here’s what the chart looks like:
Long-term volatility remains pinned at multi-year lows. The Strazza Indicator hasn’t been this compressed in over five years.
Meanwhile, weekly momentum already fired a sell signal. Price is slipping back below a key AVWAP that’s propped it up since the April lows. That’s not what strength looks like.
Intermarket evidence from credit-sensitive groups shows the cracks are spreading.
We’ve already booked clean doubles on our homebuilders and bitcoin shorts, and this tape is making it harder and harder not to lean heavier on the bearish side.
If we get a meaningful wave lower, the vulnerable groups will go first.
