IP: Robinhood and its Merry Traders lean in

As of yesterday’s close, 98% of S&P 500 stocks were trading above their 50-day moving averages, boosted by reopening hopes and the much better than expected jobs report. The S&P 500 has officially wiped out its 2020 losses, and other global markets have seen massive gains in two months. The MSCI All World Index trades at more than 20 times 2020 earnings, the highest level since 2002.

Citigroup’s panic/euphoria model is showing sentiment at the most “euphoric” since 2002 (dot-com bubble era). “We are concerned that thoughtful approaches are being overwhelmed by the need to at least keep pace with price moves,” said the bank’s analysts. “People are ignoring joblessness, trade friction, social unrest, and risks that loom including possible Covid-19 reinfections, the end of bonus supplemental unemployment checks and the upcoming elections.” 

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