Stock Market Sentiment Indicator Moves Into Cautious Territory

ByBrad Lamensdorf

Stock Market Sentiment Indicator Moves Into Cautious Territory.  We use a number of sentiment indicators as contrarian guides on where the market is headed since investors inevitably are wrong.  One of our favorites is the Investors Intelligence bulls/bears poll of more than 100 newsletter writers. The latest survey shows that the difference between the bulls…

Historical Trends Suggest Major Stock Market Volatility and Weakness In The Months Ahead

ByBrad Lamensdorf

Historical Trends Suggest Major Stock Market Volatility and Weakness In The Months Ahead.  Troy Bombardia is well known for his astute analysis on the stock market and trading based on historical trends.  He notes that huge swings in volatility in 2003 resulted in mostly bearish returns for the S&P 500 in the months ahead (See…

Excessive Optimism By Options Traders is Negative Short-Term Signal for Stock Market

ByBrad Lamensdorf

Excessive Optimism By Options Traders is Negative Short-Term Signal for Stock Market.  We use a variety of  investor sentiment indicators as contrarian signals on the direction of the stock market.  Largely because most investors, including so-called “expert” money managers and brokers, usually are wrong.  One of the indicators we use is the Options Speculation Index….