Investor Sentiment on Stock Market Remains in Caution Zone

Investor Sentiment on Stock Market Remains in Caution Zone. We use investor sentiment as a contrarian indicator of where the market may be headed.  One of our favorite indicators is the Investor Intelligence poll of more than 100 stock market newsletters. The jump in Covid-19 cases sent the stock market lower last Friday. And that…

Investor Sentiment Has been Signaling Stock Market at Precarious Levels

We use investor sentiment as a contrarian indicator of where the market is headed. So, Investors earlier this week were getting increasingly optimistic about the market despite clear signs that stocks were becoming very overpriced. The more stocks become overpriced, the more they are subject to falling down for any number of reasons, including unforeseen…

Overly Bullish Sentiment Indicator is a Negative for the Market

Overly bullish sentiment indicator is a negative for the market.  We use investor sentiment as contrarian indicators for determining the direction of the stock market.  The latest reading from SentimenTrader’s Smart Money/Dumb Money shows the indicator going from extreme pessimism on market prospects before the big surge this year to the present bullish level, which…

Investor Sentiment Gauges Have Been Suggesting Stock Market Top

Investor Sentiment Gauges Have Been Suggesting Stock Market Top.  We use investor sentiment as a contrarian indicator on the direction of the stock market because investors historically are wrong. Along with most of the  so-called stock market experts they blindly follow. So, one of our favorite contrarian indicators is the Investors Intelligence Bulls/Bears poll of…

Stock Market Sentiment Indicator Moves Into Cautious Territory

Stock Market Sentiment Indicator Moves Into Cautious Territory.  We use a number of sentiment indicators as contrarian guides on where the market is headed since investors inevitably are wrong.  One of our favorites is the Investors Intelligence bulls/bears poll of more than 100 newsletter writers. The latest survey shows that the difference between the bulls…