Courtesy of Chris Kimble.
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Updated this 6-pack with Members yesterday, reflecting that these funds could be forming bullish inverse “Head & Shoulers” patterns. These funds gave a buy signal in early 2009 when they created a series of higher lows (gray shaded boxes above) and breaking above the 50EMA.
These funds gave an early sell signal in 2007 and sell signal earlier this year, before stocks turned down. These funds remain above average in the field of predicting future stock market large moves.
If they can hold where they are right now, at the ”right shoulder” (doesn’t dip any lower and they move higher and cross above the 50EMA), that would be a bullish sign for equities. At the lows in 2008/09 a false buy signal was given on a break above and below the 50EMA then on the second cross above took place and these high yields didn’t look back for months. Keep an eye out for similar action again.
