Not-too-Hot, Not-too-Cold Investor Sentiment on Stock Market Suggests Further Upside

ByBrad Lamensdorf

Not-too-Hot, Not-too-Cold Investor Sentiment on Stock Market Suggests Further Upside.  We use investor sentiment as a contrarian indicator for where the stock market is headed.  The Investors Intelligence poll of more than 100 market newsletter writers is an important contrarian indicator for the direction of the stock market. These writers tend to act like sheep…

Sector Sum Indicator Warning Stock Market is Extremely Risky

ByBrad Lamensdorf

Sector Sum Indicator Warning Stock Market is Extremely Risky.  The proprietary Investor Intelligence Sector Sum Indicator measures how much the stock market is overbought or oversold. It has been a very reliable advance indicator of the direction of the equity market. The indicator works by analyzing the number of bull trends among the 45 major…

Why Record Amount of Corporate Debt Downgrades Could Be Good News for Stock Market and Economy

ByBrad Lamensdorf

Why Record Amount of Corporate Debt Downgrades Could Be Good News for Stock Market and Economy. The major credit agencies are notorious for waiting until the last minute when things are really bad to downgrade their ratings on issuers’ debt, particularly for larger companies like those in the S&P 500. That’s because they get their…

Strong Insider Buying is Good News for Stock Market

ByBrad Lamensdorf

Strong Insider Buying is Good News for Stock Market. Corporate insiders have been buying their companies’ shares much more than selling them while investors were dumping stocks freaked by the coronavirus pandemic (See chart below). In fact the ratio of companies with insider buying vs. insider selling was 1.75 for March. This level is the highest…

Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term

ByBrad Lamensdorf

Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term.  Investor sentiment indicators historically are good indicators of the direction of the stock market. So, in these times of great uncertainty it is interesting to note that important indicators from SentimenTrader are signaling a near-to-intermediate-term stock market bottom. The chart below, which is a compilation of…