Are you positioned correctly for the next market move?
The MOTR Risk Gauge, built on principles that have guided investors through bull and bear markets for over 35 years, provides unbiased clarity in a noisy investment landscape. Here’s where it stands for the upcoming month…
May, 2026 – The month of April saw a rally that brought major indices back to all-time highs, led by areas such as Semiconductors, IT Hardware, Industrial Metals, Clean Energy, Transports and more. During that process, the Risk Gauge in the Short-term worked all the way back to ‘Risk On.’ Even during the selloff fueled by worries in the Middle East, the Risk Gauge never moved into the bottom half of ‘Risk Off’ or even ‘Mixed’ on the Long- or Medium-term time frames, which is what kept us net long throughout the volatility.
However, this is a Risk Gauge configuration we have seen repeatedly over the last 3–4 years since the 2022 bear market bottom. The Risk Gauge continues to struggle to move into a full ‘Risk On’ environment that would signal a healthier broadening market. Instead, we continue to teeter between ‘Mixed’ and ‘Risk On’ while market leadership becomes increasingly divergent, even as the major indices push to new record highs.
For now, we are still participating in the leadership areas mentioned above, but we are also more aware than ever of the market divergence underneath the surface. As a result, new speculative trades are being sized down appropriately, and we are continuing to strictly respect risk management rules in case breakouts fail or pullbacks deepen further.
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