Momentum Shift As Bonds Have Big Move
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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:
- Gold miners have a lot to prove
- Using options to trade a positive seasonal window in TLT
- Junk bonds are trying to recover but remain suspect
- Time to Keep a Close Eye on Corporate Bonds
- Investors Have Soured on Stocks AND Bonds
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The post titled Momentum Shift As Bonds Have Big Move was originally published as on SentimenTrader.com on 2018-10-08.
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