Market Trends Continue To Lean Into A Bullish Signal
The old saw that markets climb a wall of worry is alive and kicking. Although there are plenty of warnings from analysts who see trouble ahead, trend profiles show no fear, via several pairs of ETF proxies for profiling the appetite for risk, based on prices through yesterday’s close (May 22).
What some see as a gravity-defying run higher extends similar profiles from earlier this year (see here and here). The party must end eventually, as all bull runs do, but for the moment the bias for risk-on remains conspicuous.
The net-positive bias still looks strong generally via an aggressive global asset allocation portfolio (AOA) vs. its conservative counterpart (AOK). At the start of the trading week this ratio touched a new record high before edging down on Tuesday and Wednesday.