This is an abridged version of our Daily Report.
Newsletter writers have continued to pull back their stock market expectations. The Investor’s Intelligence Bull Ratio is now below 70% for the first time in more than six months.
Other times a long streak of optimism ended, stocks showed subpar returns, until either optimism returned or declined enough to be neutral at most.
Every day an emotional swing
For the past 8 days, S&P 500 futures have opened far from where they closed the prior day. That’s one of the longest streaks of emotional opening volatility since 1982.
Short-term returns were negative after other streaks, but long-term returns were very good.
Two years ago, there was more than $250 million invested in the Rydex Strong Dollar mutual fund. Now it’s down to a lowly $7.9 million, a decline of 97%.
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The post titled Newsletter Optimism Ebbs As Gaps Pile Up was originally published as on SentimenTrader.com on 2018-04-12.
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