Highly Irrational Investor Optimism  Means Stock Market is Getting Very Scary

Highly Irrational Investor Optimism  Means Stock Market is Getting Very Scary.  We use investor sentiment as contrarian indicators of where the market is headed because historically investors are wrong.  Recent market record highs have made investors so giddily optimistic they are ignoring underlying indicators of weakness, such as the lack of breadth propelling the market…

Investors Beware: Surging Bullish Sentiment Signaling Stock Market is in Dangerous Territory for Short and Medium Terms

Surging Bullish Sentiment Signaling Stock Market is in Dangerous Territory.  We use stock market sentiment as contrarian indicators of where the market is headed. So we’ve been watching with growing concern the steady climb of bullish sentiment during the last few weeks towards levels that historically occur before short-term and intermediate-term downturns. For instance, trading…

Investor Sentiment Suggests Stock Market Nearing Danger Zone

Investor Sentiment Suggests Stock Market Nearing Danger Zone We use investor sentiment as a contrarian indicator of the direction of the stock market. An increase in bullish sentiment during the past week suggests the stock market is entering a danger zone, at least for the short term.  The Investor Intelligence Bulls/Bears poll of market newsletter…

Growing Bullish Sentiment Is Warning For Stock Market Investors

We use investor sentiment as a contrarian indicator of stock market direction. Growing bullish sentiment is a warning for stock market investors. Bullish investor sentiment increased during the past week. This is an indication investors should be more cautious. The Investors Intelligence poll of market newsletter writers showed bullish sentiment at 52.8% an increase from 49.1%…

Investor Sentiment Continues to Warn Stock Market Investors to be Cautious

We use investor sentiment as a contrarian indicator of where the stock market is headed because investors historically are wrong. Based on the latest sentiment indicators we continue to advise investors to remain cautious, particularly in these times of volatile, roller coaster markets in which new stock lows greatly outnumber new stock highs. We should…