Gold Just Did Something For The 1st Time In 25 Years
-
Jason Goepfert
Published: 2019-06-21 at 11:02:09 CDT
Gold’s near-record streak
Gold broke out to a multi-year high for the first time in more than 2,000 days, which was nearly its longest streak in 40 years.
The ends of other super-long streaks without a new high all saw the metal trade lower over the next couple of months. The dollar tended to be weak, as did gold miners, but stocks were strong.
Overbought and volatile
The new high in gold was accompanied by the it most-stretched Relative Strength Index reading in four years, and it has struggled to hold momentum with readings this high.
Options traders’ bets of future volatility have also skyrocketed, which has coincided with turning points in recent years.
Missing out
The S&P has fully recovered from its May pullback and sits at a new high. Yet the latest survey of individual investors from AAII still shows more bears than bulls. Their persistent pessimism is rare, with only four similar cases in the past 30 years.
Big push
The S&P 500 hit a new high, and the percent of issues on the NYSE at a new high hit its highest level in 350 days. When both hit a 350-day together, the S&P was higher 36 out of 41 times a year later, with average risk of only 3.1% versus average reward of 15.2%.
Low debt
Over the past 3 months, margin debt as a percentage of stocks’ market cap has averaged only 1.88%, the lowest in more than a decade.
This post was an abridged version of our previous day's Daily Report. For full access, sign up for a 30-day free trial now.
Related Posts:
- Gold Miners Thrust but Have a Lot To Prove
- Weekly Wrap for Oct 22 - Breadth Thrusts, Risk-On Behavior, Metals Double
- What Happens When Oil Prices Show Historic Momentum
- The Copper/Gold Ratio as an Economic Indicator
- Crude Oil Moving Average Trend Persistency
Tagged As:
The post titled Gold Just Did Something For The 1st Time In 25 Years was originally published as on SentimenTrader.com on 2019-06-21.
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.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>