Market Consolidates Gains Near Highs
FOMO (Fear Of Missing Out) is back. Previously, we discussed the speculative nature of , from record call option activity to historical highs in equity allocations. However, such occurs when the Fed is tapering bond purchases, futures are predicting three rate hikes, and is surging.
There seems to be nothing that can derail this “freight train.” Consequently, such is usually about the time something happens. For now, we are maintaining our equity exposure as the consolidation of October’s advance continues. As shown, our biggest concern has been the absolute lack of volume () during the recent advance.
Furthermore, the MACD “sell signal” remains; however, the money flow signal is nearing oversold. Such suggests the market will likely remain weak near-term. As noted in Friday’s Daily Market Commentary:
“Seasonality is strong this year as stocks push higher. However, note the first two weeks of…