
Computer-driven traders have exhibited a notably bullish stance on stocks, marking the widest divergence in sentiment compared to human investors since early 2020, prior to the Covid pandemic downturn. This divergence is characterized by algorithmic and trend-following funds increasing their equity exposure, while discretionary human investors remain bearish, often reducing their stock holdings. Market experts have noted that the current positioning of computer-driven traders is near maximum long, suggesting limited short-term upside potential. Concurrently, a new generation of individual investors, described as "buy the dip" investors who have adapted to market volatility rather than fearing it, are providing additional support to the stock market. This cohort effectively acts as contrarian buyers during market panics, contributing to the market's resilience beyond what might be expected from traditional investor behavior.


A New Generation of ‘Buy the Dip’ Investors Is Propping Up the Market - WSJ https://t.co/qNRqLY5pcx
This bull market is built differently. A new generation of "buy the dip" investors, who were told to fear crashes but instead learned to love vol, is propping it up These bullish investors function like short sellers did previously, buying during panic My latest for @WSJheard
Heard on the Street: The resilience of individual investors may signal something more than just misplaced optimism as a new generation of “buy the dip” investors is propping up the market https://t.co/Ha2x48GQIA