Nasdaq QQQ Invesco ETF

As I reported earlier this week, the short-term LAMPP has turned red. It's only by a hair, but it did cross the line. This is no surprise to us. I have been reporting to you every week that we were getting closer and that a signal change was imminent.

I have been warning you that Treasury supply would soon increase radically. As expected, the federal government is now moving to raise the cash it needs to pay back the funds it raided internally under the debt ceiling and to rebuild cash. The Treasury will issue net new debt of $54 billion over the next few days.

At the same time, buyers of that new debt will no longer have the Fed's help in financing those purchases. In October, the Fed will start draining cash from the system, instead of adding $25-$30 billion per month to primary dealer accounts, as it has been doing lately.

The long-term LAMPP signal should turn red within the next month or so.

What that means is that the market should now begin its turn to the downside… the risk-reward equation has tipped to the sell side… and we will start seeing more and more opportunities to hop aboard the short side for solid profits.

Since you've hopefully been building a larger cash position over the past few weeks, you should be able to make one or more speculative trades to capitalize on the signal change. (Of course, timing these trades will require technical analysis, which I cover over at The Wall Street Examiner Pro Trader.)