Market Pulse on January 28th

Olivier Rigot, EMC Gestion de Fortune

1 minutes de lecture

S&P 500 3787,38 +36,61.

Although the stock market is trading almost at its historical highs, there’s chaos in the market place and hedge funds are suffering bitterly. Read this interesting article in today’s WSJ.

This illustrates the flow of liquidity that central banks have liberated last year and that is fueling one the biggest bubble we have ever seen in our career and it may not be the end, time will tell.

The stock market rebounded from Wednesday’s selloff in good volume and decent breadth (2809 stocks up, 1323 down on the NYSE). Options traders continue to buy calls at the same rate as the last few days. The weekly survey among active professional portfolios managers points out to a decrease of aggressivity from this category of investors. They may be obliged to deleverage their portfolios to meet the margin calls linked to the short squeezes they suffered lately and this may put pressure on the whole market. Our risk profile index still trades in the high risk zone and our short term trading model has started to turn down.

Very short term oscillator Negative -
Short term oscillator Negative -
RVI trend Negative -
Trend short term (5 days) Down
Trend mid term (8 days) Down
Differential of trends Up
Risk profile 81 (scale of 1 (low risk) to 100 (high risk))

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