1) S&P Equalweight index (SPW) is the most over-bought it’s
been since the Summer of 2020 - e.g. 14-day RSI = nearly 75 (vs the
14-day RSI for the big 7 = just ~55). 2) we are coming off a period
of historic ‘easing’ – historic collapse in yields, historic rip in
equities; note: GIR rates strategy makes that further Yield
declines could be limited in the near-term. 3) Dec +
Jan are seasonally very weak months for the Momentum factor (worth
keeping in mind given HF long portfolios have reached a near-record
tilt toward Momentum as a factor. Sentiment continues to turn as
the 4-week change in the AAII Bear Index was one of the largest
drops we have seen in the last 20yrs (e.g. bearish sentiment in the
market is at its lowest level since Jan of 2018). Source: GS Global
Banking and Markets as of 12/4/23
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
GS: Technicals on our radar. 1)
Posted by te22 on 4th of Dec 2023 at 12:37 pm
GS: Technicals on our radar.
1) S&P Equalweight index (SPW) is the most over-bought it’s been since the Summer of 2020 - e.g. 14-day RSI = nearly 75 (vs the 14-day RSI for the big 7 = just ~55). 2) we are coming off a period of historic ‘easing’ – historic collapse in yields, historic rip in equities; note: GIR rates strategy makes that further Yield declines could be limited in the near-term. 3) Dec + Jan are seasonally very weak months for the Momentum factor (worth keeping in mind given HF long portfolios have reached a near-record tilt toward Momentum as a factor. Sentiment continues to turn as the 4-week change in the AAII Bear Index was one of the largest drops we have seen in the last 20yrs (e.g. bearish sentiment in the market is at its lowest level since Jan of 2018). Source: GS Global Banking and Markets as of 12/4/23