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Jan 11, 2019
INVESTOPEDIA: Why Investors Should Raise Cash Amid Bull Market’s Rally

INVESTOPEDIA: Why Investors Should Raise Cash Amid Bull Market’s Rally

Despite a strong rally in stock prices that has restored some confidence in the market, Goldman Sachs is advising investors to build their levels of cash now. "The potential exists for further equity market downside in the near term even if the recent equity market collapse does not lead to a recession,” says Goldman's recent Macroscope report, pointing out that cash positions are at their lowest in 30 years.

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Related Ticker: SPXE

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


SPXE in upward trend: price may ascend as a result of having broken its lower Bollinger Band on September 10, 2026

SPXE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 36 of 41 cases where SPXE's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 88%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

SPXE moved above its 50-day moving average on September 11, 2026 date and that indicates a change from a downward trend to an upward trend.

Following a +1.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where SPXE advanced for three days, in 251 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SPXE as a result. In 48 of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 66%.

The Moving Average Convergence Divergence Histogram (MACD) for SPXE turned negative on August 20, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In 36 of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at 67%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPXE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 69%.

The Aroon Indicator for SPXE entered a downward trend on September 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Notable companies

The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Microsoft Corp (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Broadcom Inc. (NASDAQ:AVGO), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), Micron Technology (NASDAQ:MU).

Industry description

The investment seeks investment results, before fees and expenses, that track the performance of the S&P 500® Ex-Energy Index (the "index"). The index is designed to measure the performance of the companies included in the S&P 500 Index with the exception of those companies included in the energy sector. Under normal circumstances, the fund will invest at least 80% of its total assets in components of the index or in instruments with similar economic characteristics. It is non-diversified.

Market Cap

The average market capitalization across the ProShares S&P 500® ex-Energy ETF is 145.46B. The market cap for tickers in the group ranges from 4.8B to 5.27T. NVDA holds the highest valuation in this group at 5.27T. The lowest valued company is ENPH at 4.8B.

High and low price notable news

The average weekly price growth across all stocks in the ProShares S&P 500® ex-Energy ETF was -1%. For the same ETF, the average monthly price growth was -1%, and the average quarterly price growth was 16%. HPE experienced the highest price growth at 19%, while COO experienced the biggest fall at -23%.

Volume

The average weekly volume growth across all stocks in the ProShares S&P 500® ex-Energy ETF was 9%. For the same stocks of the ETF, the average monthly volume growth was 6% and the average quarterly volume growth was -26%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 51
Price Growth Rating: 48
SMR Rating: 50
Profit Risk Rating: 62
Seasonality Score: -29 (-100 ... +100)
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IGV has rallied about 8–9% in the last 6 trading days, while SOXX has dropped about 8%, giving software a +16.6 percentage‑point edge—the largest 6‑day software‑over‑semi outperformance ever.[barchart]​ This comes right after software lagged semis by almost −15 percentage points into late January, the widest gap since 2008, and as hedge‑fund short exposure to U.S. software and services hit a record ~3.8% of market cap.
Crude’s explosive war‑driven spike faded on March 9 because the market suddenly started to price less extreme, shorter‑lived supply risk and more policy intervention, not a multi‑month shortage. WTI, which had briefly traded above 115–120 dollars on Iran‑war headlines and Strait of Hormuz fears, slid back toward the high‑80s as traders digested G7 reserve‑release talk, Trump’s comments about a “brief” war, and the reality that prices had run far ahead of fundamentals.
Shares of ARQ plunged approximately 27.50% in premarket trading on March 10, 2026, from a prior close of $3.20 to roughly $2.32. The primary catalyst was a deeply disappointing Q4 2025 earnings report, which revealed a net loss of $50.0 million for the quarter versus a net loss of $1.3 million in Q4 2024.
RAIL shares fell approximately 15% in premarket trading on March 10, 2026, following a steep after-hours reaction to disappointing Q4 2025 earnings results released after the close on March 9. The primary catalyst was a significant revenue miss: Q4 revenue came in at $125.6 million, well below consensus estimates near $144–$160 million, representing an 8.8% year-over-year decline.
ZVRA shares surged approximately +17.86% on March 10, 2026, driven by a blockbuster Q4 and full-year 2025 earnings report released before the market open. Primary catalyst: Q4 2025 EPS of $0.19 crushed the consensus estimate of $0.05 — a 280% beat — while revenue of $34.1 million exceeded forecasts by 21.57%.
LITE surged +14.73% on Monday, March 9, 2026, closing at $640.69 versus a prior close of $558.44 on March 6. The primary catalyst was the landmark $2 billion strategic investment by NVIDIA announced March 2, with the market continuing to price in its full implications following a brief post-announcement pullback.
Shares of BNTX fell approximately 22% on Tuesday, March 10, 2026, following a dual shock of disappointing full-year guidance and a surprise leadership upheaval. The primary catalyst was BioNTech's Q4 2025 earnings report, which included a 2026 revenue outlook of €2.0–€2.3 billion — well below analyst consensus and signaling continued pressure from declining COVID-19 vaccine demand.
CNC shares fell approximately 10% during Tuesday's session, extending a prolonged selloff in the managed care sector. The primary catalyst is intensifying investor concern over federal Medicaid and ACA funding cuts tied to the "One Big Beautiful Bill Act" (OBBBA), which threatens to shrink the government-sponsored insurance pools that Centene depends on for the majority of its revenue.
Technology recently peaked near 35% of the S&P 500 and has slipped over the last year, while Energy plus Materials remain near historically low combined weight at roughly 6%, which suggests the gap is still unusually wide.
Average daily equity purchases by retail investors on S&P 500 down days in 2026 are at the highest level on record, running about 100% above the peak intensity seen during the 2021 meme‑stock boom.
Over the past two weeks, PLTR has climbed from roughly the high‑130s to the mid‑150s, a gain of about 12–14%, with a series of strong up days between March 2 and March 6.
AVAV shares dropped approximately 10% in premarket trading on March 11, 2026, following a disappointing Q3 fiscal 2026 earnings report released after the prior session's close. Q3 revenue of $408.0 million came in far below analyst consensus of approximately $475–$488 million, representing a massive top-line miss.
KOS shares are down approximately 20% in premarket trading on March 11, 2026, having shed roughly 20.31% across the last two sessions (Tuesday close and premarket Wednesday). The primary catalyst is Kosmos Energy's announcement of a massive $185.25 million public equity offering priced at $1.90 per share — a steep discount to recent trading levels.
NBIS shares surged approximately +10% in premarket trading on March 11, 2026, from a prior close of $96.32. The primary catalyst is the imminent addition of Nebius Group to the Bloomberg 500 (B500) Index, effective prior to the open of trading on Thursday, March 12, 2026.
ORCL shares surged approximately +10.49% in Wednesday's premarket session, trading around $165.07 versus Tuesday's closing price of $149.40. The primary catalyst is Oracle's Q3 FY2026 earnings beat, with adjusted EPS of $1.79 vs. the $1.70 consensus estimate, and revenue of $17.2 billion topping the $16.92 billion forecast.
Shares of AngloGold Ashanti plc (AU) are down approximately 5.00% in early trading on March 11, 2026, falling from a prior close of $108.26 to around $102.85. The primary driver is a renewed pullback in gold prices, which has weighed heavily on gold mining equities across the board.
HMY shares are trading down approximately 13% in early session trading on March 11, 2026, following the release of the company's H1 FY26 interim results. Revenue of R44.4 billion (~US$2.6 billion) missed analyst consensus estimates of R47.56 billion, a significant shortfall that spooked investors.
FICO fell over 9% today, extending a multi‑week downtrend that has already knocked the stock more than 7% lower since its last earnings update. The decline comes despite strong recent financial results, including double‑digit revenue growth, expanding margins, and repeated earnings beats.
RERE fell roughly 10% today, giving back a portion of its strong gains over the past year and month, as traders reacted to fresh earnings and guidance. The company delivered robust Q4 2025 results, with revenue growth near 30% year over year and earnings per share ahead of consensus estimates, underscoring continued operational momentum.
Top hedge funds like Millennium, Citadel, and Bridgewater showed limited direct accumulation of penny stocks in Q4 2025 13F filings, but rotations into biotech, energy, and defense sectors highlight indirect interest in low-priced plays under $5. New entries and increased positions focused on volatile sectors like biotech (e.g., ABCL) and energy (e.g., AMPY), with full exits from overvalued names signaling a hunt for undervalued pennies amid market uncertainty.
INVESTOPEDIA: Why Investors Should Raise Cash Amid Bull Market’s Rally