Sentiment gauges retreat a small amount under trade tension

Short term gauges have retreated  after two weeks of selling. The CNN fear greed index is at 37, down from the mid- 50’s last week. The NDR short term sentiment gauge is at the mid-50 range, down from a recent peak of 85. While we are off the highs, the numbers haven’t entered into buy…

Investor Sentiment and Other Reliable Indicators Suggest Stock Market is Skating on Thin Ice.  We use investor sentiment as a contrarian indicator. Although the DJIA, S&P 500 and the Nasdaq Comp hit new highs, sentiment and other reliable indicators are telling us that the stock market is skating on thin ice.   For instance, the broad…

By John Del Vecchio and Brad Lamensdorf Hedging is dead. As the markets climb higher, investors have abandoned protecting their portfolios. One of the clearest examples is from the Equity Hedging Index (EHI) calculated by SentimenTrader.com The EHI measures the activity across numerous ways that investors can hedge their portfolios. The more heavily hedged investors…

Higher and Higher Levels of Bullish Stock Market Sentiment are Getting Downright Scary. We use investor sentiment gauges as historically accurate contrarian indicators  of  the direction of the stock market. So, what’s raising red flags for us is this week’s poll of more than 100 newsletter writers from SentimenTrader. FYI, SentimenTrader supplies the research to determine…

“Be fearful when others are greedy and greedy when others are fearful.” – Warren Buffett Short-term and intermediate-term sentiment gauges are signaling investors have become greedy –  warning signs that that stock prices are too high. The CNN Fear and Greed Index is now in greedy territory at 63.  Meanwhile, the Ned Davis Research (NDR)…

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…