It’s that time of the week again…
On today’s Momentum Monday we do our usual tour of the markets and momentum and discuss a few new ideas.
Google, Apple, Amazon, Facebook, and Netflix are at or near their all-time highs. In the meantime, emerging and most foreign markets continue to struggle below their 200-day moving averages. The divergence between U.S.and foreign stocks in 2018 is bigly.
The big question is will the emerging flu spread to US markets?
The chart that stood out to me most was from Sentiment Trader. Small options traders are in a speculative bullish frenzy:
The very smallest of options traders are gorging on speculative call options to the greatest extent since the 2009 low. pic.twitter.com/9c4Nz5IqOg
— SentimenTrader (@sentimentrader) June 16, 2018
I think these signals work better when it is the fear that is spiking. That said, the last time this indicator got this speculative the markets went sideway for more than a year.
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