2 CHARTS DU JOUR AND THE LATEST AAII SURVEY SENDING OUT CAUTIONARY SIGNALS

By
0 mins. to read

The chart below struck me as being potentially pretty ominous. The similarities are pretty eery I think you’ll agree. One thing however that tempers this is the level of put buying in recent months, I get the feel that the market is well hedged for a downdraft.

The Treasury chart also paints an historical picture and I would not bet against a continued rise in yields here, certainly given the employment figs of last Friday.

Finally, the latest AAII survey really caught my eye – the swing into positive sentiment (a contrarian signal) is one of the largest on recent record. For bulls this is a worrying sign, particularly as the S&P 500 makes a meal of getting back about its 50 day SMA. Something worth watching…

Comments (0)

Comments are closed.

YOUR FREE INVESTMENT MAG

Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.