With continued uncertainty in global markets, take a look at this troubling chart.
Jason Goepfert from SentimenTrader: “The last time that stocks held up while economic reports failed to beat expectations, stocks sold off hard (see chart below).”
Those reports have not been consistently positive, at least in terms of exceeding economists’ forecasts. The Citigroup Economic Surprise Index has been below 0 almost every day in 2016, its longest period (by far) below zero, or nearly so. Earlier this month, the Bloomberg Economic Surprise Index dropped to its 2nd-lowest reading dating back to its inception in 2000, exceeded only by January/February 2009. That has raised concerns that the stock rally is running on fumes.”
Goepfert went on to note: “There are a lot of mixed signals among our indicators and studies. Our models are declining from excessive optimism, so the risk/reward has seemed skewed toward “risk” for most of the past month. Currently, we don’t have a strong opinion either way, as there are just too many conflicting data points in our niche. We’ve been favoring being defensive over aggressive, but that’s harder to justify at this point. We see no edge here.”
The commentary and chart above is from SentimenTrader. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***KWN has now released the extraordinary audio interview with Rick Rule and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also released: Worldwide Equity Party Continues – What’s Next And What About Gold, Silver And The Miners CLICK HERE.
***KWN has also now released an exclusive sneak peek at the Spring Trends Journal with Gerald Celente, who will be giving KWN listeners around the world this exclusive sneak peek at the just-released Spring Trends Journal and you can listen to that audio by CLICKING HERE OR ON THE IMAGE BELOW.
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