How Did the “Smart Money” Miss This Rally in Equities?

SYNOPSIS

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We hope this isn’t you! It shouldn’t be if you’re learning and profiting from the ProfiTrend Advantage. There’s nothing like momentum stocks to keep your portfolio moving in the right direction. And the collective momentum has taken most of the major indexes to all-time record highs recently.

Last week… Unlike the previous week, the S&P 500 took the lead this past week, with a gain of about 1%. The S&P/TSX Composite Index was unchanged.

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PTP… Our PTP APAR score continued to climb over the past week, while the S&P/TSX Composite Index and S&P 500 APARs each fell a few points on our scale.

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We added three new holdings to our portfolio last week, to reduce our excess cash position.
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Investor Confidence… In April the State Street (Global) Investor Confidence Index (SSICI) increased to 72.9 up 1.7 points from March’s revised reading of 71.2. That’s really not much in light of current equity market conditions.

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As usual we provide more detail on the regional ICI’s in the complete Investor Confidence section of TrendWatch Weekly. We also question how smart the so-called “smart money” really is. After all, you and I have been accumulating amazing profits in equities since the December 24 low, but the proportion of funds in equities held by the “smart money” remains near all-time lows. Perhaps “dumb money” is a more appropriate term.

Cannabis Corner… Pot stocks were mixed bag of winners and losers last week. Check out the details in the expanded section.

PTA Perspective… Since we’ve devoted a little more discussion than usual of the latest SSICI results and their implications, we haven’t prepared an extra PTA Perspective section this week. But be sure to send in your suggestions for future topics or research projects.