The "Mannarino" Index

The Mannarino Market Risk indicator was created by Gregory Mannarino in September 2021. 

Whenever this indicator is high, stocks don't perform well. 

Whenever this indicator is low, stocks shoot up.

Lions, as you know- we are going to utilize a new way to gauge market risk, The Mannarino Market Risk Indicator. We are using a scale from 50 to 400 to gauge risk. We derive a “risk number” using this equation- we multiply the DXY by the 10yr Yield and get X. Then we divide X by 1.61

At the time of this writing the Mannarino Market Risk Indicator stands at around 86.

Here is a general scale of how to gauge risk.

A reading from 50-100 = LOW RISK

A reading from 100-200 = MODERATE RISK

A reading above 200 = HIGH RISK

A reading above 300 = EXTREME RISK.

Keep in mind that we need to take in the current environment as a whole, but again in general, the lower the MMRI, (Mannarino Market Risk Indicator), the more risk in we should be taking on in equities. The higher the MMRI the less risk we take.

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GM