Risk Appetite Wanes As Small-Caps' Trend Ends And Funds See Outflows
-
Jason Goepfert
Published: 2018-07-30 at 11:22:26 CST
This is an abridged version of our Daily Report.
Lack of risk appetite
Discretionary stocks are at a multi-month low relative to defensive Staples.
That sign of risk-off behavior is unusual with the S&P near a high but has not been a good excuse to sell stocks.
Another trend ended
The small-cap Russell 2000 ended a long streak above its 50-day average. When recently setting a new high, the ends of similar streaks led to more weakness for small-cap stocks in particular, not necessarily the broader market.
Mass exodus
Investors have pulled more than $40 billion from equity funds in 8 weeks. That’s the most since 2016 and ranks near other extremes in the past 15 years.
The latest Commitments of Traders report was released, covering positions through Tuesday
The 3-Year Min/Max Screen shows basically the same extremes as last week, as “smart money” hedgers continue to build on multi-year or record long positions in coffee and the Swiss franc.
For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today. |
Related Posts:
- A ray of hope for stocks from high yield bonds
- New lows on the Nasdaq near a 25-year record
- Nasdaq nears record new lows as hedging activity spikes
- Do new lows suggest capitulation
- A jump in stocks cut in half, with Healthcare bearing the brunt
Tagged As:
The post titled Risk Appetite Wanes As Small-Caps' Trend Ends And Funds See Outflows was originally published as on SentimenTrader.com on 2018-07-30.
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:
>