Sentiment Indicators Warning Stock Market is Still in Dangerous Territory

ByBrad Lamensdorf

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…

Record Enterprise-Value-to-Sales Ratios Shows Why Stock Market is So Unstable

ByBrad Lamensdorf

Record Enterprise-Value-to-Sales Ratios Shows Why Stock Market is So Unstable. It was no surprise to us that an unexpected event like the coronavirus scare of China would spark a major stock market decline. That’s because, as we’ve discussed in recent weeks, the stock market has been vastly overvalued. The market is at record levels by…

Growing Bullish Sentiment is Indicating Stock Market is Getting Very Dangerous

ByBrad Lamensdorf

Growing Bullish Sentiment is Indicating Stock Market is Getting Very Dangerous.  We use investor sentiment as historically accurate contrarian indicators of the direction of the stock market. So we’re not surprised the ongoing record-breaking rallies are making investors absolutely giddy.  As a result, blinding them to the evidence that the market is increasingly overbought. In…

S&P 500 Record Price-to-Sales Ratio is Warning Stock Market Trading on Thin Ice

ByBrad Lamensdorf

S&P 500 Record Price-to-Sales Ratio is Warning Stock Market Trading on Thin Ice.  As the chart below shows, the price-to-sales ratio (P/S) of the S&P 500 is at an all-time high of 2.42. As a result, that’s a major warning sign that the stock market could be in for some rough times.  After all that…

Investor Sentiment is Flashing Warning Signs for Stock Market

ByBrad Lamensdorf

Investor Sentiment is Flashing Warning Signs for Stock Market. We use investor sentiment as an important tool for indicting where the stock market is headed. During the past week major sentiment indicators were flashing warning signs for both the short term and intermediate term. The SentimenTrader’s Smart Money/Dumb Money Confidence Spread shows smart investors becoming far…