This is an abridged version of our Daily Report.
Shrugging off disappointment
Economic reports haven’t kept up with economists’ outlooks, but it hasn’t mattered as the S&P 500 has rallied to all-time highs. When stocks hit a 200-day high and economic surprises a 200-day low, future returns were good. They were even better when economic surprises were positive, though.
Once more, with feeling
After ending a long stretch without a 52-week high, the S&P followed-through on Monday with a large gain.
A day of follow-through improved future returns, especially when that follow-through day was larger than 0.75%.
The Optimism Index on gold has moved above 30 after dropping below 20 in the past week. There have been five similar signals since 1991, leading to a positive return over the next three months four times, with one minor loss.
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The post titled Stocks Shrug Off Economic Reports Amid Buying Follow Through was originally published as on SentimenTrader.com on 2018-08-28.
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