Warning: Declaration of YOOtheme\Theme\Wordpress\MenuWalker::walk($elements, $max_depth) should be compatible with Walker::walk($elements, $max_depth, ...$args) in /home/customer/www/lmtr.com/public_html/wp-content/themes/yootheme/vendor/yootheme/theme/platforms/wordpress/src/Wordpress/MenuWalker.php on line 112

THE LMTR EDGE:

Join over 25,000 investors and get alerts for:
  • Market Timing Reports
  • Sentiment Updates
  • Chart of the Week
  • Weekly Podcasts
  • The Magic Number - Top Stocks

Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term

Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term.  Investor sentiment indicators historically are good indicators of the direction of the stock market. So, in these times of great uncertainty it is interesting to note that important indicators from SentimenTrader are signaling a near-to-intermediate-term stock market bottom. The chart below, which is a compilation of various sentiment indicators, indicates excessive pessimism on the part of investors.  That is a positive for a market bounce from a contrarian point of view because the average investor usually is wrong. Note in the chart how pessimism peaked in the past just before upward moves by the S&P 500 index (SPX).

Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term
Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term

Another widely followed SentimenTrader Indicator measures the trading  patterns of so-called “dumb” and “smart money.” As the chart below shows the Smart Money/Dumb Money confidence spread remains in positive territory.

Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term
Sentiment Indicators Suggesting Stock Market Bottom for Near-to-Intermediate Term

See More Sentiment Updates:


Brad Lamensdorf

Brad Lamensdorf, the founder and portfolio manager of Active Alts, is a principal and co-manager of the AdvisorShares Ranger Equity Bear ETF. He previously managed a long-short investment partnership from 1998-2005 under the name Tarpon Capital Management. Earlier in his career Mr. Lamensdorf was an equity trader/market strategist for the Bass Brothers’ trading arm. He managed a short only portfolio in addition to co-managing a $1bil hedging program. He also served as in-house market strategist for the entire internal and external network of Bass Brothers money managers.

Leave a Reply

Your email address will not be published. Required fields are marked *

2018 - All Rights Reserved © LMTR, LLC

Privacy Policy - Contact Email: info@lmtr.com