Momentum Shift As Bonds Have Big Move
-
Jason Goepfert
Published: 2018-10-08 at 10:37:21 CST
This is an abridged version of our Daily Report.
Momentum shift
The McClellan Summation Index is below zero for the first time in a half-year.
It’s also turning negative while stocks are still relatively close to their recent highs, and that has been more of a negative shorter-term.
Bonds’ biggest move since January
The yield on 10-year Treasuries had the biggest move in more than nine months by hitting a multi-year high with a Relative Strength Index above 75. Other times this happened, watching short-term moves was a clue for longer-term.
Start of a panic
On Thursday, more than 1.5 million put options were traded on 10-year and 30-year Treasuries.
Change in trend
The Nasdaq 100 closed below its 50-day average for the first time since May.
The latest Commitments of Traders report was released, covering positions through Tuesday
The 3-Year Min/Max Screen shows that “smart money” hedgers moved to yet another multi-year long position in gold and long-term Treasuries while adding to massive short exposure to unleaded gas.
Related Posts:
- Weekly Wrap for Dec 17 - Big Tech divergences, Staple thrust, Biotech oversold, bond pessimism
- Bio-tech has turned into a bio-wreck
- Interest rates and trend-following - part III
- Bond sentiment is coming back from the brink
- Interest rates and trend-following - part II
Tagged As:
The post titled Momentum Shift As Bonds Have Big Move was originally published as on SentimenTrader.com on 2018-10-08.
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:
>