To The Moon

Joining the Vote:

Your equities view/positioning is:

• Bullish (Fundamentals)
• Bullish (Technicals)
• Bearish (Fundamentals)
• Bearish (Technicals)

Some Observations:

$S&P 500(.SPX)$ almost hit 4,100 and closed the day with an upper wick which is a hint of a potential pullback early next week. If it pulls back, the target would be the 10 DMA (3,997 point area). Overall I expect the rally to continue into February 3-6 and get to at least the gap resistance at 4,203.

Investors continue to embrace riskier stocks over defensive ones. $Invesco S&P 500 High Beta ETF(SPHB)$ hit 9 month highs.From the $USD Index(USDindex.FOREX)$ and $S&P 500(.SPX)$, As we mentioned in previous articles, the trend of the U.S. dollar and U.S. stocks is opposite. If we were to see some signs of that taking into effect, paired with the potential imminent dollar strengthening this could push equities lower.

Bear market’ ETFs have seen massive inflows! it may because of that people thinks FED pivot (Wendesday)comming.

Data from Bloomberg, as of Jan 28th

$Nasdaq100 Bear 3X ETF(SQQQ)$ ,$Semiconductors Bear 3X Shares(SOXS)$ ,$ProShares Short S&P500(SH)$ ,$ProShares Short SmallCap600(SBB)$ ,$ProShares Short QQQ(PSQ)$

However, cited from chief market strategist Finom Group, Seth Golden: 

On Monday Jan 30th, the Summation Index is likely to cross 900 for the first time since 2020. Historically, this is an extremely bullish signal of broad-based breadth momentum.

Forward positive return rate:
3-month = 88%
6-months = 85%
12-months = 94%

Do you believe the market is going to bullish regardless of the high interest rate, high inflation, Fed QT, tech valuations, and continuing the deterioration economic conditions?

What's your attitude toward the market? please vote!