"US stock valuations have dropped drastically against the rest of the world"

1. ISM Manufacturing. "US manufacturing activity expanded in July at the fastest pace in more than four years as demand remained strong, production surged and firms added workers."

2. Hedge funds vs. US equities. "US equities saw the largest net buying since Nov '20 (+3.9 SDs 1-year), driven by short covers across Macro Products and Single Stocks, as overall long flows finished relatively modest. US Materials was among the best performing and the most net bought sectors [last] week, driven almost entirely by long buys."

3. Retail vs. Semis + Memory. "Retail's aggressive buying of semiconductor and memory stocks sharply reversed in late July, with selling reaching roughly 20x the two-year average."

4. NYSE ATHs. "Strange how little attention the NYSE Composite gets. It's literally the index of stocks trading on the world's most important stock exchange, and it just closed the month at another new all-time high."

5. SPX relative valuation. "US stock valuations have dropped drastically against the rest of the world, with their premium dwindling to only about 22%. That's the lowest in more than six years and well-below the 10-year average of 31%."

ICYMI