Why Huge Problems at Nomura and Deutsch Bank Could be Troubling for the Stock Market

ByBrad Lamensdorf

Why Huge Problems at Nomura and Deutsch Bank Could be Troubling.  After years of mismanagement, Japan’s Nomura and Germany’s Deutsch Bank are in deep trouble. As the charts below show, their stocks are at multi-year lows while the stock market is at near-record highs. Why should we worry? Both financial giants are tremendously overleveraged. They…

Stock Market Sentiment Indicates Investors Should Remain Cautious

ByBrad Lamensdorf

Stock Market Sentiment Indicates Investors Should Remain Cautious.  We use investor sentiment as contrarian indicators about the direction of the stock market.  Short-term and long-term indicators this week were giving mixed messages, which tells us to remain cautious. The CNN Fear/Greed short term sentiment Indicator moved from a very greedy 62 at the beginning of…

Sentiment Indicators Suggest Continuing Stock Market Volatility

ByBrad Lamensdorf

Sentiment Indicators Suggest Continuing Stock Market Volatility.  Short-term investor sentiment indicators were back down in overbought territory late week. They  showed some initial investor nervousness earlier in the week. This amid the uncertainty over US-China talks that triggered a sharp market drop. The VXX volatility index, for instance, moved higher then started down again later…

Despite Stock Market Drop, Sentiment Indicators Warn: Don’t Buy!

ByBrad Lamensdorf

Despite Stock Market Drop, Sentiment Indicators Warn: Don’t Buy!  We use investor sentiment as contrarian indicators for determining market direction. The indicators in past weeks have been warning that the stock market would remain highly volatile.  This is because investors, who historically are wrong, were overly optimistic. Sure enough, confirming the market’s vulnerability,  Trump’s China…