Explainer

This page explains three core tools I use in my weekly analysis and how I interpret them.

Market Temperature Zones

The Market Temperature Model is a weekly gauge of the overall market environment, scored from 0 to 10 across four pillars: trend, sentiment, monetary/macro conditions, and market regime. It tells me whether conditions favour being aggressive, selective, or defensive.

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Trend States

One of the inputs to the temperature model is the trend state of SPY and QQQ. I also use the trend states to rank and analyse ETFs and individual stocks. Here’s how the 7-state system works.

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Relative Strength (RS) Quadrants

The RS map plots every ETF in the universe against SPY, and in the stock drill-downs, the individual stocks against the ETF. The quadrant tells you where each sector, theme or stock sits relative to its benchmark.