“Satisfaction of one's curiosity is one of the greatest sources of happiness in life.” ~Linus Pauling, Nobel Laureate (Chemistry, 1954 and Peace, 1962)

Good evening:

As the first trading week of October and the fourth quarter of 2023 began, Fundstrat Head of Research Tom Lee acknowledged that the tough third quarter, in which the S&P 500 fell 3.6%, has left investors nervous and fearful. However, he pointed out that the markets and the economy have been resilient this year, and “from that perspective, it’s always been better to add exposure when markets are concerned and skeptical and fearful.”

And they are: Lee pointed out, for example, a recent intraday spike in the CBOE put/call ratio to 1.97% – i.e., investors bearishly and disproportionately buying puts. “A spike like that has only been seen 20 times in the last 7,650 trading sessions (0.2%), it’s incredibly rare,” he pointed out, “and it’s a signal that a turning point for stocks is imminent. When market participants make an extreme move in one direction, the forward path tends to be the opposite. With the right catalysts, a buyable opportunity will emerge soon.”

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Mark Newton has also noticed recent bearishness, and he, too, sees this as a good sign. “Look at what's happened sin...

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