As Panic Buying Flips Discretionary Investors From Under To Overweight, Only One Question Matters

For much of 2023 we have repeatedly said that while the fundamentals scream new market lows, the technicals, positioning and liquidity have - on the contrary - been extremely bullish week after week (see here, here, here, here, here, here, etc) driven by investor positioning that could on several occasions be described as apocalyptic, and when mixed with a massive liquidity injection by central banks this year, and especially by the Fed following the March bank failures when we saw a huge reserve spike, sparking the year's big performance chase...

Chase begins pic.twitter.com/DLPt5w8DG4

— zerohedge (@zerohedge) March 17, 2023

... the result has been the highest print in the S&P in over a year, and the longest stretch of weekly gains in the S&P since 2021.