S&P 500 futures Vs fair value: +19.90. NAS Com futures Vs fair value: +85.40
There is a new Fund Manager Survey is out Wednesday, and it shows improvement in sentiment, and that only 18% of participants believe in this V-shaped recovery plus, 50%+ of the respondents see this rally as a bear market bounce despite the new all-time highs in the NAS, and a record 78% of fund managers say the market is the most overvalued it has been since the late 1990’s.
From that, we glean that positive shift in sentiment among large fund managers implies a lot of FOMO buying of stocks is ahead.
The response to strong economic data implies a new trade aka Do Not Fight the Trump White House
This point refers to the fact that the market is contemplating what it means to have policy stimulus in the hands of GOP political incumbents in an election year.
We have seen trillions announced, promised, dedicated and in the mail. With more to come.
That said it hard to imagine good news that is not on the tape at the bell.
S&P 500 Continuous Contract Futures (ES#); ETF: SPY
Gold Continuous Contract Futures (GC#); ETF: GLD
Have a healthy day, Keep the Faith!