Risk-On (score > 60)
Equities lead, VIX compressed, credit spreads tight, USD soft, yields rising. Lean long beta โ high-beta tech, semis, small-caps. Avoid bonds + defensives.
Neutral / Transition (40โ60)
Mixed signals. Markets are repricing. Reduce position size, favor mean-reversion over momentum, watch for breakouts in the dominant trend.
Risk-Off (< 40)
Bonds bid, USD bid, gold bid, equities under pressure, credit widening. Hedges work. Long vol, long defensives, raise cash. Avoid high-beta longs.