“Davidson Submits:

The  SP500 Net Non-Commercial Futures Positions series was updated yesterday at -80.1, a 90pt decline from 30 days ago. Investors following price-trends remain very skittish. SP500 history shows that  pessimists have used a rise often as an opportunity to increase negative bets. Meanwhile, Real Retail Sales and the Trucking Tonnage indices continue along their prior uptrends which provides support for continued economic expansion. Inside buying activity has been sparse but for specific instances in which share declines were well below historical Pr/Sales ratios. Importantly, insiders at many companies hold huge gains having accumulated positions in 2020, and now are over-committed to their respective company’s success. They are not selling with earnings reports and guidance continuing to be higher than market expectations.

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A rising economy continues as does bouts of pessimism. A good time to continue to acquire equities.

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