Is It Time to Be a Contrarian?
Many market metrics are flashing caution. The put-call ratio has exceeded 80% multiple times this month, and major indexes continue oscillating around their 200-day moving averages—a key level that often attracts risk managers’ attention. On a momentum relative basis the market is also testing a key level.
Investment advisor sentiment remains deeply bearish, with expectations of further downside over the next six months. But could this be a signal for contrarians?
On the other hand, market bull Tom Lee believes we are at a tradable bottom. His perspective:
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