While the S&P 500 and Dow Jones Industrial Average hover near all-time highs, something is brewing .. and it smells like fish stew (or fish tacos at Brion’s Grille).
The Dow market-neutral momentum (blue line) is plunging and it coincides with short-momentum gains (red line).
Momentum ETFs are seeing a large outflow.
MTUM, the iShares Momentum Factor ETF, has seen large outpourings of funds.
I wonder if the Atlanta Fed’s GDP NOW forecast of 1% GDP for Q4 2019 has anything to do with the exodus from Momentum indices?
Yes, I smell fish stew rather than red roses.