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Market Sentiment Update January

Market Sentiment Update January 981 980 Realm

A number of Sentiment readings have reached levels which have previously indicated capitulation.

Investors Intelligence
In the Investors Intelligence poll last week the ratio of Bulls to Bears fell below 1 meaning there are more Bears than Bulls. This often marks capitulation.

Investors Intelligence

Investors Intelligence

 

AAII
In the AAII public poll the four-week moving average of nett (Bulls minus Bears) has fallen to a level that has previously marked capitulation

AAII

 

Fund Flow
The black line is the four-week Equity Fund flow (inc ETF) as reported by lipperusfundflows.com. This number reached a historic -$93.3 Billion as of last week representing a massive outflow of funds.

Fund Flow

 

Rydex Ratio
Our version of the Rydex Assets Ratio fell to 5.60 on Tuesday, the lowest since July 2016. Since the market low on 12/26 the ratio has fallen as the market has rallied. That’s encouraging.

Rydex Ratio

 

Disclaimer:  ‘Where the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.

This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.