NVQ - Interesting Buying Signal
2023-04-24 12:45:00 ET
Summary
- The S&P 500 Net Non-Commercial Futures has become a reliable market sentiment in recent years.
- The S&P 500 posted a recent low in Oct 2022 and is rising on rising pessimism.
- Pessimism always presents buying opportunities.
The S&P 500 Net Non-Commercial Futures has become a reliable market sentiment in recent years. Last week, a new single-week low of -344.3 is the lowest level in 10yrs and the last 12mos of pessimism. There is no single event to point to other than a recent rise in the S&P 500 from $3,900 range provided an opportunity for pessimistic investors to build additional hedges to equity portfolios. This is a useful high-frequency indicator to monitor sentiment. The S&P 500 posted a recent low in Oct 2022 and is rising on rising pessimism. Experience indicates this remains a market buying opportunity.
Pessimism always presents buying opportunities. In my opinion, this period is particularly opportunistic.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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Interesting Buying Signal