One of my favourite Yogi Berra quotes was in response to a question about a restaurant: “Nobody goes there anymore; it’s too crowded.”
Everyone seems to agree that the market is overbought, sentiment is insanely positive, leverage is excessive and that the flow of funds has been unbridled – in short, that the long trade is too crowded. If so, who’s still buying?
Stocks have ignored most every opportunity to correct – whether technically or fundamentally driven. It’s the kind of behaviour we often see around OPEX and year end when the algo tractor beams typically take hold.Do the algos have markets firmly under control, or might investors come to their senses?
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