From Cabot Top Ten Trader
Big picture we remain very optimistic that the path of least resistance remains higher—the action of the market itself since the low, including the green light from the 2-to-1 Blastoff Indicator, looks like the initial thrust off a major low that should result in higher prices down the road. We’re also impressed with how hesitant investors seem to be when embracing the rally—during the past five weeks, more than $10 billion has actually flowed out of equity mutual funds and ETFs (figures updated last night) despite the market rally. Moreover, a respected survey of institutional investors found them holding an above-average amount of cash. Both are positive pieces of anecdotal evidence. Simply put, we remain very optimistic that the market can do well in the months ahead.
Updated February 15, 2019