Don’t forget to keep an eye on this week’s important events in the economic calendar. It’s a quiet start, but things will pick up with US inflation on Wednesday and PPI + Unemployment Claims on Thursday.
Last week was all about selling. Stocks, commodities, crypto – you name it, it was sold. US equities were net sold for the 4th straight week, and hedge funds have been doing a lot of selling too.
The good news is that Goldman Sachs positioning indicator has moved from ‘Stretched’ to a ‘Neutral’ reading. While it’s not a buy signal yet, there have been large scale liquidations. Let’s see if more longs are flushed out this week.
Looking ahead, October has historically been the best month of the year. It’s the month where the most 10%+ rallies have begun. So, even though September hasn’t been great, there’s hope for October.
On the crypto front, there have been the biggest outflows on record. BTC is -25% off its highs. As Warren Buffet says, “Be greedy when others are fearful, and be fearful when others are greedy.”
That’s all for this week. Take care and stay safe out there!
