No Shortage of Non-Believers

The Top 50 continues to ride the uptrend, while the Total Tracker shows profit taking. Here's this week's charts:




For the 5th week in a row, the Top 50 remains overwhelmingly in the S fund.




On the other hand, the Total Tracker saw stock allocations dip 6.93%, from a total allocation of 49.23% last week, to 42.3% this week.



The S&P 500 remains firmly in an intermediate term uptrend. We can see price continues to track in a narrow range within the upper and lower trend lines. MACD has flattened out, while RSI remains relatively strong.

Given the fairly strong dip in stock allocations across the total tracker last week, it's not surprising that our sentiment survey came in on the bearish side with 36% bulls vs 52% bears. That's bullish and put the system back into a buy condition.

It could be awhile yet before this market sees a serious decline with sentiment readings like this. Even so, strength remains the biggest driver of this rally and until that abates we're likely headed higher.

 

[JTH]

Thank you, this is great stuff, the way these folks are holding, it's going to be hard to crack into the top 50 if this rally continues.

 

[wavecoder]

autotracker positions can change in a hurry, what the top 50 are doing can change in a matter of days when they're no longer the top 50, but good read

 

[wavecoder]

also a part of the reason could very well the people who buy & hold the S fund are on top because the S fund is #3 on the tracker as well

 

[coolhand]

also a part of the reason could very well the people who buy & hold the S fund are on top because the S fund is #3 on the tracker as well

Primarily what I'm watching for in these charts is large shifts in stock allocations. Last year the Top 50 had a poor track record whenever they shifted stock allocations down by more than 10% (because this is a bull market). This kind of information can help in decision making when trying to trade large moves. But so far this year, underlying market strength is trumping or at least distorting many indicators, including sentiment. Once that strength fall off we'll see market character change once again.