BAC Client flow trend reports
- Private clients have been buyers for 21 weeks straight
- while hedge fund clients were sellers for a fourth straight week
- Corporate Clients above typical seasonal levels for the fifth consecutive week (i.e., buybacks)
- Buying is across all sectors and led by Tech and healthcare
Elsewhere I have seen that retail clients have purchased over $60B, and 401 (K) buying is still very strong.
Retail investors are really taking long-term view and buying.
$577, $587 resistances are coming up. If China news on Monday is strong probably we may take out those too.
- 2008-09 recession caused by GFC saw big impact to EPS because of financials
- 2000-02 recession is caused by dot.com bubble burst, and 9/11
The heavy weights in SP500 are mega tech, whose earnings seems to be resilient and EPS contraction could be better than average 20%.
Reminder to Self: Markets can rally or move sideways while economy is going through recession.