Why the stock market won’t stay down when everyone is ‘nervous’ and ‘defensive’

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Why the stock market won’t stay down when everyone is 'nervous' and 'defensive':

October isn’t living up to its reputation for volatility, but that doesn’t mean investors aren’t nervous.

Money-market funds have seen assets rise for three straight weeks, according to Deutsche Bank, and have received $497 billion in net inflows year-to-date, despite seeing outflows of $55 billion in the months of March and April. Equity funds have continued to see outflows.“We have been meeting with institutional, family office, and household investors around the world over the past few weeks, and can only conclude that nearly everyone is nervous and in a defensive position.

Dwyer said four of his favorite tactical indicators now stand in “neutral territory,” with first, the percentage of S&P 500 companies above their 10- and 50-day moving averages falling from 76% and 58%, respectively, to 20% and 40%; second, a retreat by the VIX from more than 21; third, a drop in the 14-week stochastic indicator — a gauge of stock-market momentum — rising back to 73 after dropping below 30. Finally, 47.

 

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Dogs that bark alot dont bite

Fake China agreement tweets and hopes of QE? It certainly isn’t positive economic indicators.

If anybody has seen Christian Bale dressed like a Nerd recently then its likely he's preparing for thebiggershort Can the last person logged in please switch out the lights !

All it takes is one bad tweet from Mr realDonaldTrump something like 'We will impose 25% tariffs on 250 bln goods from China.'

Interesting. I feel once things like China US trade become more positive and USMCA gets signed, that money on the sidelines will come back in. Alot of money taken out, lots of negative media on China US trade, Recession and USMCA yet we are still near record highs.......

That's when people buy the dip. investing invest investment

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