CPS - 'So Far So Good' Stock Market (And Sentiment Results)...

2023-09-01 02:02:11 ET

Summary

• While August and September are seasonally weaker months for equities, there is still a lot to do.
• Media appearances discussing the "catch up" trade and areas of opportunity.
• Bullish sentiment slightly increased, retail investors remain cautious, and active investment managers sold in the hole and reduced equity exposure.

In our July 27, 2023 weekly note and podcast|videocast we talked about a 3-5% pullback in the month of August. We also said we expected these dips would be BOUGHT due to the fact that most managers under-performed in 1H and were still overweight cash/t-bills and underweight equities (relative to their 20 year history):

In my media appearances yesterday I talked about what this "catch up" trade would look like some areas we are finding opportunity to pounce.

First, I joined Nicole Petallides - on The Schwab Network - live from the NYSE. You can watch it here:

Later in the afternoon I joined Seana Smith and Akiko Fujita on Yahoo! Finance.

Here were some of my show notes ahead of the segments:

BABA Update

Cooper Standard Update

Morgan Stanley's Jonas on UAW strike:

Now onto the shorter term view for the General Market:

In this week's AAII Sentiment Survey result, Bullish Percent ticked up to 33.1% from 32.3% the previous week. Bearish Percent ticked down to 34.5% from 35.9%. The retail investor is showing continued trepidation.

The CNN "Fear and Greed" Index ticked up from 49 last week to 51 this week.

And finally, the NAAIM (National Association of Active Investment Managers Index) dropped to 34.36% this week from 59.87% equity exposure last week. Guess who sold in the hole and is going to have to "chase up" yet again?

Opinion, not advice.

For further details see: