The end of an amazing streak. Since 1928 – We have just witnessed a move that has rarely taken place in the last 90 years.
Dumb Money Is Looking Smart
October 28 (King World News) – Here is a portion of an extremely important note from Jason Goepfert at SentimenTrader: This is the 12th time the S&P 500 has lost more than 1.5% the day after a Dumb Money Confidence reading below 21% (see chart below).
POLAR OPPOSITES: Smart & Dumb Money Confidence
Over the next week, 10 out of the 11 signals saw the S&P rally by an average of 5.8%. The only loss was -0.9% and was erased the next day…
To listen to Doug Casey’s just-released KWN interview discussing his prediction of financial and economic chaos and a panic into gold CLICK HERE OR BELOW:
The Trend Is No Longer Your Friend
Many of the studies we’ve looked at in the past couple of weeks have filtered out results based on the fact that the trend in stocks was rising.
Trend can be defined an infinite number of ways, but we’ve found that simpler is better. If price is above the 200-day average, or if that average is rising, then it’s an uptrend. The S&P 500 is trading below that average, and now its slope has turned down as well (see chart below).
The Tide Is Turning Against Stock Market Bulls
The End Of An Amazing Streak
This ends one of the S&P’s most illustrious streaks. It had gone more than 600 days with an upward-sloping average, ranking among its very best since 1928 (see stunning chart below).
6th Longest All-Time Streak For Stocks Just Came To An End
Bad News For Stock Bulls
Now that we can no longer count on that rising trend as a potential tailwind, future studies will be more jaded. It will become rarer to see positive returns following oversold or pessimistic readings, and more common to see negative returns following rallies.
This is why Jason Goepfert is the best in the world at what he does — proving actionable market data. To subscribe or try a free two week trial to the internationally acclaimed work that Jason Goepfert produces at SentimenTrader CLICK HERE.
Egon von Greyerz discusses his meeting with the Chinese and what they are up to in the gold market as well as what other surprises are in store for the last two months of 2018 CLICK HERE OR ON THE IMAGE BELOW.
ALSO JUST RELEASED: Greyerz – China Just Took Delivery Of A Massive Amount Of Gold From London & New York CLICK HERE TO READ.
To listen to the man who worked side-by-side with the Chairman of the Comex in the 1970s and called the stock market crash of 1987 CLICK HERE OR ON THE IMAGE BELOW. What he had to say about what is coming for stocks, bonds and gold is priceless.
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