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Stock Market Sentiment Indicators Continue to Advise Caution

Stock Market Sentiment Indicators Continue to Advise Caution.  Short-term indicators are no longer oversold, suggesting the possibility of short-term bounces. The real story remains with the intermediate-term indicators. They suggest stock market investors should remain cautious. They see no stock market bottom in sight. This is true particularly in this period of high volatility and…

Increase in Inverted Sovereign Yield Curves Globally Means Slower Growth than Stock Market Anticipates

Increase in inverted Sovereign Yield Curves globally means slower growth than Stock Market anticipates. The U.S. stock market is priced for an earnings troth and then reaccelerating of growth later this year.  But it is our opinion that the growth in the number of inverted sovereign treasury yield curves around the world is painting a…

Stock Market Sentiment Indicators Advise Caution

We use Investor sentiment as contrarian indicators of market direction. It comes as no surprise that the CNN short-term Fear/Greed Index (see chart)  registered extreme during this week’s market turmoil. From a contrarian point of view, indicates there’s a possibility of some short-term market bounces.  However, intermediate-term gauges are telling investors to remain cautious. There’s…

Investor Sentiment Indicators Still Warning Stock Market Investors to be Cautious

Investor Sentiment Indicators are still warning Stock Market investors to be cautious. We use investor sentiment as contrarian indicators for guidance on market direction. The average investor tends to buy and sell at the wrong times.  Although the indicators show that this week’s tremendous volatility frightened some investors into being more cautious, the move away…

The Present Declining Yields Despite Fed Rate Cuts Historically Indicates Big Economic Woes Ahead

The present declining yields indicates big economic woes ahead. Despite the Fed’s recent rate cut to stabilize the economy, yields are plunging instead of going up. And that’s very bad news for the economy and the stock market. Only two times in recent history – just before the crash of 1987 and the great financial…