Buying So Eager It's Never Been Seen Before
-
Jason Goepfert
Published: 2020-02-06 at 11:00:00 CDT
Early and aggressive
Buyers keep coming into stocks before regular trading hours. Before each of the past 3 sessions, buyers pushed S&P 500 futures up at least 0.45% before the open.
With a new all-time high by the close, this kind of buying pressure has never been seen before.
Since the inception of the futures in 1982, there have only been a few times when buyers were so eager that they pushed the futures up at least 0.25% before regular trading hours for three sessions in a row. Each of them preceded losses in the futures either 1 or 2 months later, but at this point it seems like any historical precedents are strictly “FWIW.”
Ultimate guide to moving averages
Most technicians (and even many fundamentalists) look at moving averages on price charts. We're conditioned to use certain ones, like the 200-period, no matter the market or time frame. But is that the best one to use?
Troy goes in-depth about moving averages and the best ones to use for different markets in this overview video:
McClellan Summation
The U.S. stock market's rally since December 2018 has been very persistent, causing long term breadth indicators like the McClellan Summation Index to stay consistently positive.
It has now been above the zero line for more than a year, marking its 4th-longest stretch since 1962.
The 3 other times the McClellan Summation Index was positive for so long, stocks either fell immediately, or melt-up and then tanked.
This is an abridged version of our recent reports and notes. For immediate access with no obligation, sign up for a 30-day free trial now.
We also looked at:
- The S&P went months without a 1% move, now its has seen a cluster of them
- A broad swath of investors have record low allocations to cash
- Sentiment hit an extreme, stocks dipped, then recovered - what happens next
- The new high / new low ratio is surging again
- Oddly, traders are pushing the QQQ Liquidity Premium higher
Tagged As:
The post titled Buying So Eager It's Never Been Seen Before was originally published as on SentimenTrader.com on 2020-02-06.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>