This Week’s Divergence

It’s still early, but this is an arresting chart:

This shows us that High Beta stocks are falling hard while the Low Volatility sector is barely scratched. This is a big divergence. It generally signals that investors are less willing to shoulder risk.

The gap opened on Friday but narrowed as the day wore on. Then it got bigger yesterday, and today it’s quite large.

Posted by on June 19th, 2018 at 10:50 am


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