Every trading day starts with one critical question: Is the market risk-on or risk-off?
Market regime is the backdrop against which all your trades play out. It's the difference between a tailwind and a headwind. Get it right, and your setups work more often. Get it wrong, and even great setups fail.
The Three Regimes
Bullish (Risk-On) — Indexes trending up, breadth is broad, sectors rotating into growth. This is where you get aggressive with long setups, size up, and let winners run.
Bearish (Risk-Off) — Indexes trending down, breadth is narrow, money flowing into defensives. Reduce size, focus on short setups or sit in cash. Cash is a position.
Choppy (Mixed) — No clear direction, indexes whipping back and forth. This is the most dangerous regime. Tighten stops, reduce size, and be highly selective.
How MAC Terminal Helps
The Market Regime card in the Overview tab automatically reads the current regime using SMA crossovers, index momentum, and breadth data. It tells you whether to be aggressive, cautious, or defensive — before you even look at a chart.
The key takeaway: never fight the regime. Trade with the current, not against it.