Wednesday, December 20, 2023

Will we see the Santa rally this year?

Mid-week market update: The recent stock market rally has been astounding. Sentiment readings on the Fear & Greed Index surged from extreme fear in October to extreme greed in less than two months. While extremely fearful sentiment can be useful buy signals, extreme bullish sentiments are condition indicators and inexact sell signals. This leads to the tactical conclusion that it’s too late for investment-oriented accounts to be adding risk. Bulls should wait for a likely pullback for a lower-risk entry point.


 

Publication note: There will only be one publication this weekend showing the model readings with a brief commentary. There will be no mid-week market update next week barring unforeseen volatility. The regular publication schedule will resume the weekend of January 30.


The full post can be found here.

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