This is an abridged version of our Daily Report.
Not much movement
Volatility in stocks, bonds, and currencies is among the lowest in 25 years.
All three have declined over the past month and collapsed since February. The few other similar periods led to gains in stocks, gold, while the dollar declined.
A yellow-tinted correction
Gold is close to tipping into a correction for the first time since late 2016, as another small down day will push it 10% below its peak from the past six months. Other corrections preceded more short-term weakness, medium-term strength.
Coffee can’t hold a rally, and investors have given up. The 10-day average of the Optimism Index has dropped below 17 for only the 2nd time in 5 years. Since 1991, there have been 74 days when it was this low.
According to the ICI, investors have withdrawn funds from non-U.S. ETFs for 8 straight weeks.
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The post titled Low Asset Volatility As Gold Nears Correction was originally published as on SentimenTrader.com on 2018-07-19.
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