Sentiment Updates

Excessive Optimism By Options Traders is Negative Short-Term Signal for Stock Market.  We use a variety of  investor sentiment indicators as contrarian signals on the direction of the stock market.  Largely because most investors, including so-called “expert” money managers and brokers, usually are wrong.  One of the indicators we use is the Options Speculation Index….

Short-Term Sentiment Indicators on Stock Market Suggest Caution.  We use investor sentiment as contrarian indicators on the direction of the stock market because historically the average investors is wrong. Intermediate sentiment indicators last week and again this week remained neutral.  That means we can derive no guidance from them in terms of intermediate-term stock market…

Sentiment Indicators Not Saying Yay nor Nay on Stock Market Direction. We use investor sentiment as important  indicators for guidance on the direction of the stock market. But there are times sentiment indicators can tell us little or nothing. For example, as you can see from the chart below, the SentimenTrader’s Smart Money/Dumb Money Confidence…

Unrelenting Negative News in Media is Bullish for Stock Market From Contrarian Viewpoint.  We use investor sentiment as a contrarian indicator on the direction of the stock market because historically they are wrong.  So, it is no wonder investors have been so skittish about the market in the face of  unrelenting negative news in the…

Investor Sentiment on Stock Market is Moving from Bullish Toward Cautious Signals.  We use investor sentiment as contrarians indicators on the direction of the stock market.  One of our favorite contrarian indicators is the Investor Intelligence poll of more than 100 newsletter editors.  Historically they are no better at playing the stock market than the…