Sentiment Updates

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…

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…

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…

Low Level of Short Interest in SPY is Negative for Stock Market.  The short interest in the S&P 500 ETF (SPY), which tracks the S&P 500, is at its lowest level in two years (see chart). That means many investors who use this this instrument to hedge against  a market drop, have lost all fear…

Extremely Bullish Investor Sentiment on Stock Market Flashes Danger Signals. We use investor sentiment as a contrarian indicator for stock market direction, and here’s why we are concerned.  The Investor Intelligence poll of more than 100 newsletter writers reports bullish sentiment climbed this week to 58.9% from the previous 57.7%. That’s the highest level of…