Sentiment Indicators Flash New Warning Signs for Stock Investors

ByBrad Lamensdorf

Short-term and intermediate term measurement of investor sentiment about stock market direction jumped sharply higher into danger territory last week, flashing warning signs investors should be very careful. The Ned Davis research (NDR) short-term sentiment poll hit 67, while the NDR intermediate-term sentiment poll moved up to 69. Anything near 70 means investors should be…

Is the Stock Market Set for a Slight Pullback? Or worse?

ByBrad Lamensdorf

The TIR composite is a gauge created by Investors-Intelligence. It is comprised of 29 indicators, and it creates a nice overbought/oversold indication of short-term swings in the market. The TIR composite is now very overbought. From a contrarian point of view that suggests a possible pull back for the short term at a minimum.  

Intermediate-Term Sentiment Indicators Flash Warning Signs for Stocks

ByBrad Lamensdorf

Measurement of the level of  investor optimism for the short term moved slightly higher this week compared with the previous week. The CNN Fear & Greed Index moved to 61 while the Ned Davis Research (NDR) Short-Term Sentiment Poll was at 60. From a contrarian point of view that indicates stock market investors should be…

3 Steps and a Stumble” Rule and Why Investors Should be Cautious

ByBrad Lamensdorf

Famed market guru the late Martin Zweig noticed the market usually under performed dramatically over the years when the Federal Reserve raised interest rates three times during a given cycle. Why? Higher rates increase corporate financing costs, weakening earnings. Rate hikes also increase investor margin expenses, which is particularly dangerous now when there has been…

Long-term Sentiment Gauges Flash Warning Signs for Stocks

ByBrad Lamensdorf

Short term measurement of investor sentiment remained in neutral territory this week. That makes it difficult from a contrarian point of view to predict market direction for the near future. The CNN Fear & Greed Index moved to 57 while the Ned Davis Research (NDR) Short-Term Sentiment Poll rose to 62 from last week’s 52. I would…