Investor Sentiment on Stock Market Remains in Caution Zone

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

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…

Investor Sentiment Rising Optimism Raising Red Flags

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…

Investor Sentiment and Other Reliable Indicators Suggest Stock Market is Skating on Thin Ice

Investor Sentiment and Other Reliable Indicators Suggest Stock Market is Skating on Thin Ice.  We use investor sentiment as a contrarian indicator. Although the DJIA, S&P 500 and the Nasdaq Comp hit new highs, sentiment and other reliable indicators are telling us that the stock market is skating on thin ice.   For instance, the broad…