Correction Incoming for US Equities!? (New Bubble Model Signals)
Pardon the clickbait title, anon. But alas, our LPPLS bubble model did recently trigger new “Correction Likely“ signals for the Nasdaq-100 (QQQ) and the S&P 500 (SPY). Quick primer… The Log Periodic Power Law Singularity (LPPLS) model is a mathematical model that is fit to an asset’s price history. It is designed to predict the emergence of financial bubbles. The model defines a bubble as a faster-than-exponential move up in price. The Bubble Early Warning Indicator is an output from this mode
The Macro Sherpa evolved over years on the desk as an analyst at multiple billion dollar asset managers. Quantitative models, tools, and analysis were de rigueur.