Yes, The Rally Is Sustainable!

Those who read our recent write-ups know that we made a case to buy the dip. Fundamental evidence motivated the bullish call. First of all, sustained bear markets unfolded during recessions only. However, historically reliable¬†leading macro indicators were not flashing red lights. Moreover, sentiment and position gauges showed pessimistic extremes. Investors held a strongly bearish …

Blood In The Streets

Sentiment indicators became increasingly pessimistic. Some of them are at capitulation levels already. Moreover, technical indicators signal an oversold stock market. Stocks typically reversed to the upside on similar conditions during the past decade. Nasdaq investor sentiment is a representative example. According to Mark Hulbert, newsletter advisors are as bearish as in March 2020 and …