Money market assets are rising quickly…not necessarily a buy signal

ByBrad Lamensdorf

Money market assets are rising quickly…not necessarily a buy signal. The table below shows the other months when the 12-month rate of change in money market assets first exceeded 25%. It wasn’t much of a signal in 1989, with a gyrating market over the next year. It was a great buy signal in ’95 and…

Beware! There’s Trouble Simmering Below Surface of  Record Nasdaq Index Highs

ByBrad Lamensdorf

There’s Trouble Simmering Below Surface of  Record Nasdaq Index Highs.  The Nasdaq index record highs are being propelled by a decreasing number of stocks that compose the index. That means things are not nearly as healthy for Nasdaq stocks in general as the record highs would suggest, says Jason Goepfert of SentimenTrader. Put another way,…

Investor Sentiment Suggests Stock Market Nearing Danger Zone

ByBrad Lamensdorf

Investor Sentiment Suggests Stock Market Nearing Danger Zone We use investor sentiment as a contrarian indicator of the direction of the stock market. An increase in bullish sentiment during the past week suggests the stock market is entering a danger zone, at least for the short term.  The Investor Intelligence Bulls/Bears poll of market newsletter…

Growing Bullish Sentiment Is Warning For Stock Market Investors

ByBrad Lamensdorf

We use investor sentiment as a contrarian indicator of stock market direction. Growing bullish sentiment is a warning for stock market investors. Bullish investor sentiment increased during the past week. This is an indication investors should be more cautious. The Investors Intelligence poll of market newsletter writers showed bullish sentiment at 52.8% an increase from 49.1%…

Another Signs Stock Market is on Thin Ice: Companies are Buying Back Stock at Prices Above Replacement Value. 

ByBrad Lamensdorf

The chart below shows that many stocks are priced above their replacement costs and companies are buying back stock at high prices above replacement value. So why do companies continue to pay ridiculously high prices above replacement cost for their own stocks? That’s because they are trying to prop up earnings at any cost. That’s…