This is an abridged version of our Daily Report.
Corporate bond struggles
Over the past 30 days, investment-grade corporate bonds have had some of the worst breadth readings in 13 years. Fewer than 42% of bonds advanced, and more than 12% of them hit 52-week lows on average.
Forward returns after similar readings were excellent, especially in terms of risk versus reward.
Letters lose steam
Newsletter writers have become less optimistic about stocks after what had been a 30-year high in sentiment. The latest week showed fewer than 3 out of 4 letters being positive on stocks, a six-month low.
Just a matter of time
The S&P 500 keeps flirting with its 200-day average, a widely-watched metric for technical traders.
According to the Investment Company Institute, mutual fund managers were holding only 2.9% of their assets in cash at the end of February, a new record low dating back to 1954.
During the past week, an average of fewer than 8% of stocks in the Nasdaq 100 have managed to close above their 10-day average.
For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.
The post titled Corporate Bonds Struggle As Newsletter Writers Retrench was originally published as on SentimenTrader.com on 2018-03-29.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management.
That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.