We never even started

Huh

Dow this. Nasdaq that. FAANG whatever. We have indices for everything but nothing to answer the most important question: Are we back or is it Joever?

Still Huh

There’s an elusive and hard to quantify aspect of the financial markets often called “Animal spirits.” Sophisticated market participants might prefer the terms “risk on/risk off.”

In essence, how motivated is the investing public to purchase financial assets today?

Looking at the major indices can give you some indication but it’s not a complete answer. You have to know not only whether people are ready to buy AAPL or AMZN today but if they’re buying a flaming pile of trash like CVNA.

What

The index consists of four components that I mashed into one number based on the vibes.

• Bottom half advancers
  • How many of the worst performing S&P500 stocks over the last year are up today?
• Vix percentile
  • The "fear gauge" relative to its price over the last year
  • Lower is better
• NDX last 30 day return
  • Self explanatory
• BTC last 30 day return
  • Animal spirits aren’t back if crypto isn't pumping