Dow's Streak Snapped As China ETF Nears Bear Market
This is an abridged version of our Daily Report.
Had to happen sometime
The Dow Industrials Average ended its 2-year streak of holding above its 200-day average, its 7th-longest streak in an uptrend since 1900.
It wasn’t a death knell for the index, especially when the Leading Economic Indicators were strong.
Sino ursus
The most popular China ETF is nearing bear market territory. Previous 20% declines in FXI led to quick, temporary recoveries, but the broader Shanghai Composite index didn’t enjoy the same tendency to see relief rallies.
Small trader enthusiasm
Small options traders have continued their preference for bullish options strategies, as the ROBO Put/Call Ratio remained at an extreme this past week. The smallest traders bought 227 speculative calls for every 100 protective puts.
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