I have updated the Chart Packs and Sentiment Dashboard in the Toolbox section of the Sentiment Matters website. Over 800 charts!
The latest update includes refreshed charts across equities, fixed income, FX, crypto and the broader Risk-On/Risk-Off framework.
A few charts that stood out:
Consumer Staples – Asset Managers’ Net Positions
Consumer Staples stands out as one of the least popular assets we track.
Perhaps not surprising. The sector has been a perennial underperformer for many years and still ranks near the bottom of our long-term momentum charts.
That is why this chart caught my attention.
CFTC data on Asset Managers’ net positions has been rising sharply in recent weeks. Asset Managers have now moved net long the sector for the first time in more than a year, marking a sharp reversal from near-record short positions only a few months ago.
One indicator does not make an investment case.
But when an indicator moves sharply against the broader bearish narrative, my ears perk up.
US Dollar SMA
US assets have been experiencing a renaissance.
Or perhaps just another leg of the Trump rollercoaster?
The chart below shows our Sentiment Matters Aggregate (SMA) for the US dollar, but the recent pattern looks very similar to that of US equities.
Record bullishness after the 2024 election was followed by record bearishness after Liberation Day. The past few weeks and months have now brought a sharp reversal back towards greater bullishness.
From a sentiment perspective, the magnitude of the shift is not extreme yet, so there is arguably further room to run.
But the mood has shifted. And the hurdle for a positive reaction to news flow is rising.
