A couple of interesting comments from this week’s note by Jeff Saut at Raymond James. First, he notes that the currently bull stampede is one of the longest he’s recorded. Second, he notes the Lowry’s buying power index which historically shows that this sort of market strength tends to persist. In other words, buy the dips is what he’s saying….
“Further, today is session 49 in the current “buying stampede,” with the longest stampede chronicled in my notes of some 50 years ending at 53 sessions. Therefore, pressing the “long side” from here has negative odds. That said, Buying Power has moved to a new high while Selling Pressure is at a new reaction low. Moreover, the Buying Power index is about to cross over the Selling Pressure index. According to Lowry’s, “Throughout the 75-year history of Lowry’s Analysis, such positive crossings have always been viewed as an important sign of strength.” Therefore, any pullback should be viewed as a buying opportunity.”
The post Saut: Pullbacks Will be Buying Opportunities appeared first on PRAGMATIC CAPITALISM.