In a seasonally favorable period, new highs keep coming for the major US equity indices. This has pushed several sentiment indicators into gross overbought territory. The S&P 500 last Friday enjoyed its 56th all-time high for the year. With three … Continued
It is probable US households’ equity allocation set a new high last quarter. Stocks have relentlessly rallied for over five months – without so much of a correction. With investor sentiment looking frothy, bulls are increasingly running out of tailwinds … Continued
Equity bears came up short last week, unable to take benefit of an opportunity to put the bulls on the defensive. Momentum remains with the bulls. With the S&P 500 having already rallied 28 percent from last October’s low, several … Continued
The ratio of Investors Intelligence bulls to bears hit three this week. This is not as extreme as four, or higher, but in today’s market, even three is becoming rare. This takes place even as the S&P 500 just hit … Continued
Record buybacks are acting as a big tailwind, offsetting headwinds coming from foreigners and margin debt. Investor sentiment is suppressed enough it can act as a tailwind. S&P 500 buybacks set a new record in 4Q21. The companies spent $270.1 … Continued
For the second time in five weeks, the S&P 500 charted out a bullish weekly hammer. Sentiment readings are suppressed, although non-commercials are at risk of being too bullish. Near-term, the path of least resistance is up – magnitude and … Continued
The S&P 500 is sitting on crucial support, a decisive break of which could send bears into panic, and that could set up a decent opportunity for a counter-trend rally. The S&P 500 is hanging by a thread. Down 2.8 … Continued
Following futures positions of non-commercials are as of February 15, 2022. 10-year note: Currently net short 174.1k, down 27.8k. Inflation has persisted much longer and broadened to more industries than the Fed initially – and stubbornly – expected. Benchmark interest … Continued
Foreigners purchased US stocks in November and December, but the 12-month total continued lower. The series comes with a lag, so it is hard to tell if they bought January’s low, particularly because the Investors Intelligence bulls-to-bear ratio this week … Continued
Investors Intelligence bulls-to-bears ratio hit four this week – a rare occurrence. This is taking place at a time when internals on the Nasdaq are diverging with the index. Tech’s importance is all too known, with the top five US … Continued