Investor Sentiment Indicators Climb Even Higher into Overbought Territory

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….

Increasing Investor Optimism and Greed Continues to Indicate Investors Should Lighten Portfolios

Increasing Investor Optimism and Greed Continues. Investor market sentiment turned even more optimistic and greedy last week. From a contrarian point of view because investors are historically wrong about where the market is headed, we once again suggest you lighten your portfolio. The Ned Davis short-term indicator was in mid-40 neutral territory a week ago….

Sentiment Indicators Continue to Indicate Investors Should Lighten Portfolios

We are constantly astonished how consistently investors make wrong bets on the markets, investing near tops and selling near bottoms. That’s because they are driven by irrational emotions of fear and greed, instead of reality. And that’s why we use investor sentiment gauges as contrarian indicators of where the market is headed. Back in late…

Investor Sentiment Continues to Indicate Investors Should Reduce Exposure

We use investor sentiment as a contrarian indicator of where the market is headed since investors are usually wrong. As we pointed out in last week’s sentiment report investors were registering extreme caution and fear just before the equity markets’ recent big upward moves. Now this week, continuing the trend of a week ago, investor…

Investor Sentiment Suggests You May Want to Reduce Exposure

We use investor sentiment as a contrarian indicator of where the market is headed since investors are usually wrong.  So just before the recent big downward moves, investors were extremely fearful. And what do you know? The market moved up.  Now after the more recent moves up, investor short-term and intermediate-term sentiment has become more…