BAML’s ‘Bull & Bear’ gauge, which takes the temperature of markets, is now flashing overheating warning signals at 7.9, just under the 8 level that BAML recommends selling.
It is the indicator’s highest since March 2013. It has given 11 sell signals since 2002 with a 100 percent hit ratio, BAML said. Average equity peak-to-trough drops in the following 3 months after the signal have been 12 percent they added.
Submitted January 26, 2018 at 11:58PM by spicydude http://ift.tt/2DQIQ3H
