On Monday, after the close, some warning signs from our risk gauges popped up. These are especially interesting given the number of bulls and the amount of money coming into the market.

Technically, we still have the resistance that has not cleared in small caps, retail, or transportation. And this is all happening with a declining dollar, bullish gold, plus renewed buying in agricultural commodities.

Could these warnings reverse? Yes, but this is the most risk-off we have seen as far as the gauges since April.

Risk Gauges: WARNINGS

SPY (S&P 500) now on par with TLT (long bonds); you don’t want TLT to outperform. Risk off.
HYG (junk bonds) underperforming TLT. Risk off.
SPY is now underperforming GLD (gold). Risk off.
WOOD underperforming GLD. Risk off.

Risk off means just that, so pay attention — these gauges are incredible.

On another note, check out Your Daily Five with 6 picks and setups I did for StockChartsTV.com today!

This is for educational purposes only. Trading comes with risk.

If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at Benny@MGAMLLC.com, our Head of Institutional Sales. Cell: 612-518-2482.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

Traders World Fintech Awards

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth.

Grow your wealth today and plant your money tree!

“I grew my money tree and so can you!” – Mish Schneider

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.