Sentiment Updates

We use investor sentiment as a contrarian indicator of the direction of the stock market. And this week’s low bearish sentiment means investors should be cautious. The most recent Investor Intelligence Bears/Bulls poll reports bearish sentiment at a very low 17.2%.  Virtually unchanged from the previous report.  Bearish sentiment below 20% historically means the market…

Investor Sentiment Warning Stock Market is Entering Danger Zone.  We use investor sentiment as historically reliable contrarian indicators of the stock market’s direction. The Investors Intelligence Bulls/Bears poll of newsletter writers moved slightly higher this week in the danger zone with 55.3% of the writers bullish. This is up from 55.1% a week ago, and…

We use investment sentiment as a contrarian indicator of where the stock market is headed. This past week we had increased investor optimism. This means the stock market has become very risky. In fact, the Bulls/Bears poll of newsletter writers and editors suggest the stock market entered the danger zone. Bullish sentiment among these writers,…

We use investor sentiment as a contrarian signal on the direction of the stock market because historically investors have been wrong.  The Red Flags caught our attention when bank of America this past week released a survey showing large investors have become 17% overweight on U.S. equities. That’s one of the most aggressive position in…

We use investor sentiment as a contrarian indicator of the stock market’s direction. Smart Stock Market Investors Beware. The latest Investor Intelligence Bulls/Bears poll of stock market newsletter writers shows increased bullishness, which is a negative since these writers are usually wrong. Even more worrisome for stocks is the fact that corporate buybacks, which have…