Data &
Technology
Research
Reports
Report Solutions
Reports Library
Actionable
Strategies
Free
Resources
Simple Backtest Calculator
Simple Seasonality Calculator
The Kelly Criterion Calculator
Sentiment Geo Map
Public Research Reports
Free Webinar
Pricing
Company
About
Meet Our Team
In the News
Testimonials
Client Success Stories
Contact
Log inLoginSign up
< BACK TO ALL REPORTS

Gold Miners Lag As Investment Managers Sell

Jason Goepfert
2018-04-01
null

This is an abridged version of our Daily Report.

Miners’ minor months

Gold mining stocks have underperformed gold prices by more than 10% over the past couple of months.

Due to their higher volatility, this is considered a negative for gold prices going forward. There is some modest truth to this, as gold (and miners) has struggled in the months after large divergences (see inside).

Investment managers cover up

Active investment managers have less than 50% exposure to stocks for the first time since May 2016. Generally, stocks do better when managers have more exposure to stocks – just not too much exposure. Most of the better bottoms have come when exposure has declined below 30% (see inside).

Hedging much?

After Wednesday’s session, options traders had traded an average of 125 puts for every 100 calls during the past week. During more than 20 years of history, the Backtest Engine shows 51 days when it got this extreme, with positive returns in the S&P 500 over the next two months after 48 of them, averaging 5.5%. For a quick video showing how we performed this exact test, visit this link. There’s no audio, it’s just a 40-second peak over my shoulder as I perform the test.

Even more extreme

The extreme short-term rout in tech stocks noted in Wednesday’s report had gotten even more extreme. Heading into Thursday, fewer than 5% of Nasdaq 100 stocks had closed above their 10-day averages over the past week. Since 2000, there have been only 17 days when the pressure had been this great. According to the Backtest Engine, six months later the QQQ fund was higher after all 17 days. You can click here to watch how I performed this test.

For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.

DATA &
TECHnologies
IndicatorEdge
‍
BackTestEdge
‍
Other Tools
‍
DataEdge API
RESEARCH
reports
Research Solution
‍
Reports Library
‍
actionable
Strategies
Trading Strategies
‍
Smart Stock Scanner
‍
FREE
RESOUrCES
Simple Backtest
Calculator
Simple Seasonality
Calculator
The Kelly Criterion
Calculator
Sentiment Geo Map
‍
Public Research Reports
‍
Free Webinar
COMPANY
‍
About
‍
Meet our Team
‍
In the News
‍
Testimonials
‍
Client Success Stories
Pricing
Bundle pricing
‍
Announcements
‍
FAQ
© 2024 Sundial Capital Research Inc. All rights reserved.
Setsail Marketing
TermsPrivacyAffiliate Program
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.