One measure of stocks suggests it's time for investors to take some caution, according to BTIG.
The 200-day moving average is a technical measure used by investors and traders to gauge an asset's longer-term momentum.
On top of that, seasonal trends — which had been positive — are about to shift against investors, Krinsky noted.
April is the worst month for the long/short momentum strategy, which refers to when investors snap up recent winners, while shorting recent underperformers.
On average, the strategy loses 4.15% on average during the month.
Persons:
Jonathan Krinsky, Krinsky
Organizations:
Stocks, Federal Reserve