Investor Sentiment and Other Reliable Indicators Suggest Stock Market is Skating on Thin Ice

ByBrad Lamensdorf

Investor Sentiment and Other Reliable Indicators Suggest Stock Market is Skating on Thin Ice.  We use investor sentiment as a contrarian indicator. Although the DJIA, S&P 500 and the Nasdaq Comp hit new highs, sentiment and other reliable indicators are telling us that the stock market is skating on thin ice.   For instance, the broad…

Sector Sum Indicator is Warning Stock Market is Risky

ByBrad Lamensdorf

Sector Sum Indicator is Warning Stock Market is Risky. The sector sum indicator measures the number of bull trends among the 45 industry sectors to determine market risk, and whether the market is about to reverse itself. The chart from Investors Intelligence shows the indicator is close to +30, which means most of the 45…

Hindenburg Omen and Titanic Syndrome Could Signal Big Trouble for Stock Market

ByBrad Lamensdorf

Hindenburg Omen and Titanic Syndrome Could Signal Big Trouble for Stock Market.  We’re obviously not talking about the German airship that went down in flames in New Jersey nor the “unsinkable” British passenger liner that hit an iceberg and sank. What we re talking about is sets of conditions in the stock market that historically…

Highly Irrational Investor Optimism  Means Stock Market is Getting Very Scary

ByBrad Lamensdorf

Highly Irrational Investor Optimism  Means Stock Market is Getting Very Scary.  We use investor sentiment as contrarian indicators of where the market is headed because historically investors are wrong.  Recent market record highs have made investors so giddily optimistic they are ignoring underlying indicators of weakness, such as the lack of breadth propelling the market…

Investors Beware: Surging Bullish Sentiment Signaling Stock Market is in Dangerous Territory for Short and Medium Terms

ByBrad Lamensdorf

Surging Bullish Sentiment Signaling Stock Market is in Dangerous Territory.  We use stock market sentiment as contrarian indicators of where the market is headed. So we’ve been watching with growing concern the steady climb of bullish sentiment during the last few weeks towards levels that historically occur before short-term and intermediate-term downturns. For instance, trading…