"I love riding a horse that's running." - David Tepper (CNBC, 1/17/2020)
Seasonal tendencies continue to dominate, overshadowing ongoing elevated readings that are historically coincident with overbought markets. For example, 48.74% of stocks in our ~1,600 stock universe are currently trading 5% or more above their 200-day moving average - levels last seen in Q1 2018.
Source: Limelight Alpha
The move up in stock prices hasn't been due simply to short covering. There's been covering, but money shifting from money markets, plus new inflows because of end-of-year retirement contributions, has been a bigger