The VXX Volatility Index is Warning of a Stock Market Correction

ByBrad Lamensdorf

The VXX Volatility Index is Warning of a Stock Market Correction.  We use investor sentiment as a contrarian indicator about stock market direction. VXX Volatility Index , which is a measure of short-term future stock market volatility, is a particularly helpful sentiment indicator,  and also is a way to illustrate how more emotional and volatile…

Investor Sentiment Stock Market Indicators Ringing Warning Bells

ByBrad Lamensdorf

Investor Sentiment Stock Market Indicators Ringing Warning Bells.  History shows us that most investors get stock market turns absolutely wrong. Therefore, that is why market professionals use investor stock market sentiment as contrarian indicators, so they won’t be part of the herd. And those indicators have shown growing investor optimism about market direction and increased…

S&P 500 Bullish Percent Index Signaling Market is Overbought

ByBrad Lamensdorf

S&P 500 Bullish Percent Index Signaling Market is Overbought.  There’s obviously no sure-fire way of determining when the stock market has bottomed, and it is time to buy. Or, for that matter, when it is near a top and it is time to head for the sidelines. However, the S&P 500 Bullish Percent Index is…

Stock Market Risk Grows with Explosion of Negative-Earning IPOs

ByBrad Lamensdorf

Stock Market Risk Grows with Explosion of Negative-Earning IPOs. As the chart from Topdown Charts shows about 76% of recent IPOs have gone public with negative earnings. That’s a near record, matching 1999 and only surpassed by 2000 when the dot.com bubble burst. Why is this an ominous sign? Historically the percentage of risky IPOs…