Transcript
Hello, everybody, welcome to Thursday. Today, the S&P 500 was down a little bit more than .8% was down farther went up, it came back down, it was a pretty volatile day all together. A lot of what we are seeing so far here in September, especially after about the second of the month, has been very similar. Market is trying to find, you know, a direction, we’re bouncing in between resistance, the stocks move up, and then people are taking profits. And so there’s enough uncertainty, again, I think they’re driven by, you know, the presidential election, and the stimulus package as far as that goes. And that’s all fine.
The leadership today was very strange, you know, Poland was the number one holding in the 415, you know, stock targeted indexes that I follow. So this is very much so what we saw a while back where we had very strange leadership. And really what I see is not rotation right now. It is money that is just going off the table. And then it comes back in we saw that on Monday and Tuesday, the money’s coming back in one of the things I follow what’s called sentiment. So sentiment indicators are basically how people are feeling about the market, how many people think it’s going up versus how many people think it’s going down.
And there’s one ratio called the put-call ratio. And without getting too technical with it, essentially, it just shows how many people are betting on an option, where the market needs to go up for them to make money versus how many people are betting on an option that the market needs to go down. And sentiment indicators are exactly the opposite of what to expect, when a huge number and a vast percentage of the people think the markets going up. What that means is that they’re kind of already invested and people are in, and there’s nobody left to push it farther. And the same thing the other way when everybody thinks is going down, they’ve already sold and the only people left are the ones that are coming back in to buy.
And so the second of December is when we hit the extreme portion of the put call ratio where people thought the market was going to go even higher. It’s the highest we’ve seen on that ratio. And now that has come way back, actually. So that’s usually a very good sign. So there is some things perking here. I think we just got to kind of keep going with this volatility and wait this out. Bonds did do well today. So that’s good. You know, we got to have our parachutes in there for these kind of days. But I think again, just a little bit of patience here and we just kind of get through this period of time and see what happens from here. Look forward to seeing what’s going to happen on on Friday here and see how we finish out the week. So I will talk to you then. Thank you.