February 9, 2022
Good morning,
Admin. Note: we’re moving into our new offices this week (see signature below). Just below Central Park and sitting on top of Times Square – we would all love to have you stop by when you’re in town, please!
Futures have been steadily climbing all night and are up nicely (+1%) following yesterday’s ~+1% gain on the S&P 500 Index. The bounce rally following January’s correction continues. So far the rally has not been a barn-burner, and is clearly lacking animal spirits thanks to the Fed’s dry punch bowl. However, it is a rally and the further from January’s lows, the better – with or without big volume (breadth thrusts).
The latest poll by the American Association of Individual Investors (AAII) – a sentiment survey – showed more pessimism than at the panic lows in 2020. That suggests a lot of negatives were priced into the market at the January lows. It’s a good sign for the short- term outlook, and is likely to be the fuel of this bounce rally.
It’s still too early in the bounce to get a measure of its message. We’ll stay patient and let the band play on.
Be well,
Mike