Wall Street analysts now have Buy ratings on 60% of the $SPX — highest on record.
This is actually a contrarian red flag.
When consensus gets this bullish, positive surprises become rare. Everyone's already positioned for good news. The bar for disappointment gets lower.
It's the classic setup: crowded trade, high expectations, thin margin for error.
Doesn't mean the market crashes tomorrow. Just means the easy money's been made, and asymmetry has shifted. Risk/reward gets worse when everyone's leaning the same way.
Be careful chasing momentum when the crowd's already all-in.
This is actually a contrarian red flag.
When consensus gets this bullish, positive surprises become rare. Everyone's already positioned for good news. The bar for disappointment gets lower.
It's the classic setup: crowded trade, high expectations, thin margin for error.
Doesn't mean the market crashes tomorrow. Just means the easy money's been made, and asymmetry has shifted. Risk/reward gets worse when everyone's leaning the same way.
Be careful chasing momentum when the crowd's already all-in.
