Bulls are at Highest Levels in Years!

Investor Sentiment Indicates Stock Market Remains Precarious. We use investor sentiment as a contrarian indicator of market direction because the average investor historically is usually wrong.. Although the short-term CNN Fear/Greed index is now registering extreme fear on the part of investors,  we believe that as a contrarian indicator that this is not yet a…

Sentiment Indicators Warning Stock Market is Still in Dangerous Territory.  We use investor sentiment as an important tool for indicating where the stock market is headed.  Despite the market’s recent tumble, indicators such as The SentimenTrader’s Smart Money/Dumb Money Confidence spread, are warning the stock market remains in overbought territory. In other words, this is…

Investor Sentiment is Extremely Fearful, Indicating Stock Market is Oversold: But  Be Careful!  We use investor sentiment as contrarian indicators of where the stock market is headed because investors historically are wrong.  The recent huge market drops have driven investor sentiment to levels of extreme fear, indicating the stock market has become oversold.  That spells…

Intermediate term sentiment is quite negative. Investors-intelligence Bulls/Bears, which monitors attitudes of more than 100 market newsletter writers, is at 60% bulls and 18% bears. That’s very negative from a contrarian point of view. The difference between the bulls and bears is now at 42, which is an extreme warning sign. The Ned Davis Research…

Historically reliable sentiment gauges we use as contrarian indicators tell us the equity markets are headed for some profitable upward bounces, particularly for the near term. The CNN Fear/Greed Index at 8 and the Ned Davis Research (NDR) short-term sentiment at 25 indicate the markets are oversold. Intermediate-term indicators are also adjusting downward suggesting upward…

Sentiment Indicators Turning Negative as Investor Optimism Grows.  We use investor sentiment as contrarian indicators on market direction since investors are usually wrong. During the past week the indicators were showing increasing investor optimism for the near term and the intermediate term. And that’s a warning signal for smart investors to watch out. Short term…