Investor Sentiment on Stock Market Remains in Caution Zone

ByBrad Lamensdorf

Investor Sentiment on Stock Market Remains in Caution Zone.  We use investment sentiment as a contrarian indicator of market direction because investors are usually wrong. As a result, investors tend to buy on the high side and sell on the low side. Professionals use sentiment and other market indicators to determine when markets are overbought…

Investor Sentiment Continues to Warn Stock Market is in Danger Zone

ByBrad Lamensdorf

Investor Sentiment Continues to Warn Stock Market is in Danger Zone.  We use investor sentiment as a contrarian indicator. Although bullish sentiment declined somewhat week over week, bullish sentiment remains in a danger zone.  As a result that means historically means investors should be taking defensive moves. This includes at the minimum tight stops and…

The Stock Markets’ Record Expansion: When Does the Music Stop?

ByBrad Lamensdorf

The Stock Markets’ Record Expansion: When Does the Music Stop? A bull market is usually defined as a period when the stock market keeps going up without a 20% pull back. By that definition, as the chart shows, we are in the longest bull market ever. So when does the music stop? Obviously, no one…

Investor Sentiment Rising Optimism Raising Red Flags

ByBrad Lamensdorf

Investor Sentiment Rising Optimism Raising Red Flags. We use investor sentiment as contrarian indicators because the average investor usually is wrong about the stock market’s direction. So it is worrisome that Investor optimism was up again this past week. Apparently naïve investors continue to be lured into complacency by record and near-record highs of the…

Commodities to Equity Ratio Remains at 50 Year Low: For How Long?

ByBrad Lamensdorf

Commodities to Equity Ratio Remains at 50 Year Low: For How Long? That ratio of commodities prices compared to stocks has been at an all-time low for the past few years. However, as the chart shows major unexpected events in the past have triggered a reversal of the commodities to equity ratio.  EquiCapita points out that…