Wishy Washy Sentiment Numbers Mean Stock Market Investors Should Remain Cautious

We use investor sentiment as an important gauge on the direction of the stock market. Sentiment Numbers Mean Stock Market Investors Should Remain Cautious. The latest Investor Intelligence Bulls/Bears poll of newsletter writers show that the May and August corrections were not strong enough to create the type of negative sentiment signaling buying opportunities that traditionally…

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Stock Market Sentiment Indicators Continue to Advise Caution

Stock Market Sentiment Indicators Continue to Advise Caution.  Short-term indicators are no longer oversold, suggesting the possibility of short-term bounces. The real story remains with the intermediate-term indicators. They suggest stock market investors should remain cautious. They see no stock market bottom in sight. This is true particularly in this period of high volatility and…

Stock Market Sentiment Indicators Advise Caution

We use Investor sentiment as contrarian indicators of market direction. It comes as no surprise that the CNN short-term Fear/Greed Index (see chart)  registered extreme during this week’s market turmoil. From a contrarian point of view, indicates there’s a possibility of some short-term market bounces.  However, intermediate-term gauges are telling investors to remain cautious. There’s…

Investor Sentiment Indicators Still Warning Stock Market Investors to be Cautious

Investor Sentiment Indicators are still warning Stock Market investors to be cautious. We use investor sentiment as contrarian indicators for guidance on market direction. The average investor tends to buy and sell at the wrong times.  Although the indicators show that this week’s tremendous volatility frightened some investors into being more cautious, the move away…

Investor Sentiment Indicates Increased Stock Market Risk

We use investor sentiment as a contrarian indicator, and those indicators are signaling increased stock market risk. For instance, the Investor Intelligence Bulls/Bears poll of stock market newsletter writer sentiment shows bullish sentiment moved up to 57.2% from 54.2% a week ago, which calls for defensive measures. A number above 55% means elevated risk. Bearish…