Investor Sentiment Indicators Continue to Warn Investors to Be Defensive

ByBrad Lamensdorf

Investor Sentiment Indicators Continue to Warn Investors to Be Defensive.  The Investor Intelligence Short-term Composite Indicator –- highly regarded by sophisticated market timers — was in overbought territory at 82 this week. That’s one of a number of sentiment warning signs this week that investors should remain defensive, and lighten portfolios. A reading over 70…

Shifting tides in the ETF Market?

ByBrad Lamensdorf

Shifting tides in the ETF Market?  The following commentary and Charts are  from our friend Kevin Duffy of Bearing Asset Management, LLC. Morningstar just released active vs. passive fund flows data for January.  There was a remarkable turnaround: Whether or not this is the start of a trend, it’s worth keeping an eye on.  I believe…

Investor Sentiment Indicators Continue to Warn Investors to Lighten Portfolios

ByBrad Lamensdorf

Investor Sentiment Indicators Continue to Warn Investors to Lighten Portfolios.  SentimenTrader’s Smart Money Confidence and Dumb Money Confidence indices allow investors to follow what “good” market timers are doing with their money.  This as compared with what “bad” market timers are doing. What’s happening now? The chart below shows that the smart money is becoming…

Sector Sum Indicator Warning Market is Moving Toward Extremely Overbought Level

ByBrad Lamensdorf

Sector Sum Indicator Warning Market is near Extremely Overbought.  The proprietary Investor Intelligence Sector Sum Indicator measures how overbought or oversold the equity markets.  This is done by analyzing the number of bull trends among the 45 major industry groups. The indicator ranges from +40, overbought, to -40, oversold.  Represented in the chart below, the…

Investor Sentiment Indicators Climb Even Higher into Overbought Territory

ByBrad Lamensdorf

Investor Sentiment Indicators Climb Even Higher into Overbought Territory. The past week’s investor market sentiment indicators are showing investors are becoming ever more optimistic about market direction.  Therefore, from a contrarian point of view because the average investor is historically wrong about where the market is headed. We once again suggest you lighten your portfolio….