By John Del Vecchio and Brad Lamensdorf
After a recent sell off, the markets are again oversold.
This favors a bounce.
One of our favorite indicators is the Investors Intelligence TIR. The TIR is a composite of dozens of indicators and we find it very useful when the readings are extreme.
It now stands at 3. That’s down from nearly 80 a month ago.
The last time the TIR got smashed, we suggested that the market would bounce only to fade from there. That’s what happened. Valuations and market sentiment are still too frothy and extreme to support much higher stock prices over the intermediate term.
But, when stocks are extremely oversold in the short-term, the bounce can be swift and significant.
That is what we expect from here in the short-term.
Want to know what to do from there?
Why don’t you give Brad a call and get his market insight personally? Brad’s Active Alts SentimenTrader Long/Short Strategy combines several decades of experience and research and actively positions the portfolio to take maximum advantage of market extremes. In both directions.