Sentiment Updates

Stock Market Sentiment Gauges Continue to Flash Warning Signals.  We use a variety of investor sentiment gauges as contrarian indicators  to help us determine the stock market’s direction because most investors are historically wrong.  As we’ve been reporting for  a number of weeks,  these historically accurate indicators overwhelmingly have been sending up warning signals for…

Investor Sentiment Turns Euphoric over Stock Market Outlook: Watch Out!  We use investor sentiment as contrarian indicators for the direction of the stock market. The Citigroup Panic/Euphoria Model of investor sentiment is yet another indicator that is warning the stock market is in dangerous territory (see chart).  The level of investor euphoria recently has been…

Smart Money/Dumb Money Confidence Spread Flashing Stock Market Sell Signals. SentimenTrader measures sentiment of so-called “smart and dumb” investors by a complex formula that differentiates the smart from the dumb by how they normally trade.  As you can see from the chart below there is a widening spread between recent optimism of dumb investors and…

Low Put/Call Ratio is Indicating the Stock Market is in Dangerous Territory. One of the most reliable contrarian indicators of future market direction is the put/call ratio.   That’s because options buyers are wrong most of the time.  The present low ratio is warning us to be very careful because most investors have become so bullish….

Increasing Investor Optimism Puts Stock Market in Danger Zone.  We use investor stock market sentiment as historically important contrarian indicators to determine where the stock market is headed. The indicators have proved to be particularly accurate as they move closer to extreme bullish and bearish levels. This week’s Investor Intelligence survey of more than 100…