The US Dollar Holding At Major Support

The dynamic of our society, and particularly our new economy, will increasingly obey the logic of networks. Understanding how networks work will be the key to understanding how the economy works. ~ Kevin Kelly, “New Rules  for the New Economy”

Good morning!

In this week’s Dirty Dozen [CHART PACK] we look at relative breakouts, large breadth thrusts, and a new bullish consensus amongst global fund managers. We then dive into record-high valuations, broad-based indicators of positioning, and recent repositioning… And end with a wall of money, data indicating a momo run into year’s end, and a cheap offshore driller trading on the cheap, plus more…

Let’s dive in.

***click charts to enlarge***

  1. High Beta stocks are breaking out versus Value. This is not bearish…

  1. @AriWald writing on the large breadth thrust we’ve seen over the last few weeks (h/t @allstarcharts). Again, not bearish…

  1. The November BofA Fund Manager Survey is out and is showing a big shift in sentiment. The key takeaways are highlighted below. If you want to know what to make of narrative shifts like this, read my thread here.

  1. NDR points out that this increasingly bullish sentiment is showing itself in much higher valuations. NDR’s Multi-Cap Median P/E is now over 3std above its long-term average. It’s highest reading ever.

  1. With sentiment boiling it’s important to remember that sentiment leads positioning, and really it’s positioning that matters when analyzing the market. And on this front, the picture is more supportive of further upside. BofA’s Bull & Bear Indicator shows flows and positioning across a number or markets. And the broad positioning picture is still neutral.

  1. And it looks like there remains some skepticism of the current rally. @MacroCharts notes that “Equity Futures traders have cut exposure aggressively – even as $SPX broke to new highs.
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