Next 20DMF Buy signal

[Pascal]

I received this private message:

Hi Pascal,
It has been a long time since the 20DMF OBOS went below -70. Do you think there's a good (or even great) chance it happens in this correction?

Thanks.

This correction is rather mild: no panic, no forced selling. For the OB/OS to fall below -70, we would need to have the great majority of the sectors in a MF and price downtrend. This means that the OB_OS value attributed to each sector should be negative for almost all the sectors.

I attach below the list of sectors that have a positive OB_OS value.

You can see that the green sectors are interest rate linked. They attract money.
The yellow sectors are defensive sectors (health, utilities).
The pink sectors are linked to cheap oil and a bounce of Nat Gaz.

This means that the market is rotating into either protective or attractive sectors.
Without margin calls and forced selling, it will be difficult to go down into OS.

The 20DMF itself is not that negative.

So, without panic, no selling!


Pascal