The ASX200 itself has experienced 3 consecutive 100-point swings as it cannot decide whether it’s yet “safe to go back into the water”. However our old friend the Bank of America’s Fund Managers Survey which was released last night provided some optimism for the bulls as the report basically screamed of “capitulation”:
- Fund managers now hold 6.3% of their portfolios in cash, the highest in over 20 years while 49% of fund managers are underweight stocks.
- 83% of investors expect global profits to deteriorate over the next 12 months i.e. they are positioned for bad news.
Our view that an aggressive “short squeeze” into Christmas is a strong possibility is getting more statistical reinforcement by the week.
- We continue to believe the ASX200 will trade in a 6400-7200 trading range into 2023 although taking into account the seasonal factors we could see a move even higher.
MM remains bullish the ASX200 into Christmas
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