"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 8 hours The Biggest Winners Of Q2 Earnings Season
  • 1 day Experts Suggest A Gold Shortage May Be Looming
  • 2 days The World Is Drowning In $247 Trillion Debt
  • 2 days Tightening Immigration Policy Could Hurt The Tech Sector
  • 2 days The First Bitcoin ETF Might Be Just Months Away
  • 2 days U.S. Rent Costs Hit All-Time High
  • 3 days European Allies Plan To Continue Trade With Iran
  • 3 days Bitcoin Bounces Off Key Resistance Level
  • 3 days These 3 Industries Are Immune To The Trade War
  • 3 days Is This The Answer To The Looming U.S. Healthcare Crisis?
  • 3 days UK Regulators Hit Facebook With £500,000 Fine
  • 3 days Tesla’s U.S. Tax Credit Coming To An End
  • 3 days Ex-Goldman Banker Caught In A Billion Dollar Fraud Scandal
  • 4 days Investors React To Escalating Trade War Drama
  • 4 days The Three Horsemen Of The Bitcoin Apocalypse
  • 4 days 10 Countries Feeling The Heat As The Trade War Escalates
  • 4 days The Exorbitant Cost Of Getting Ahead In Life
  • 4 days $1,000 Investment Bible Leaked For $10
  • 4 days The U.S.-Chinese Race To End All Privacy
  • 4 days Gold And Silver Struggle As Sentiment Shifts
These 3 Industries Are Immune To The Trade War

These 3 Industries Are Immune To The Trade War

U.S. President Donald Trump has…

Investors React To Escalating Trade War Drama

Investors React To Escalating Trade War Drama

Stock markets gained a bit…

Guy Lerner

Guy Lerner

Tactical-Beta

Guy M. Lerner, MD has been writing about the markets for over 10 years providing readers with independent and original market analysis.

Contact Author

The Sentimeter: 9.8.13

The Sentimeter remains in neutral territory. The "dumb money" has turned extremely bearish and this is a bull signal. However, the Rydex market timers remain bullish for the most part. Corporate insiders (i.e., the "smart money") is neutral. When you put it all together, it is a neutral sentiment reading.

At this stage of the market cycle, there is unlikely going to be consensus amongst the indicators. We have had a shallow dip that has turned the "dumb money" bearish. Such shallow dips will lead to marginal new highs at best. It has been nearly 2 years since the last "real" bull signal when investors were extremely bearish. Over the past 2 years, any modest selling has been met with either the introduction of a new Federal Reserve asset purchasing program or the proclamation (i.e., jawboning) that asset purchases will continue essentially forever. The market needs to clear itself of the weak hands, and the best way to accomplish this is selling. Anything short of this will lead to the same old thing.

See the Equity Market Investor Sentimeter below, which is our most comprehensive sentiment indicator. This indicator is constructed from 10 different data series including opinion data (i.e., how do you feel about the market?) as well as money flow data (i.e., where is the money going?). This is the current state of equity market investor sentiment.

Sentimeter: 9.8.13
Sentimeter Legend

 


TacticalBeta offers a 21 day FREE TRIAL (no credit card required): 1 CLICK SIGN UP

 

Back to homepage

Leave a comment

Leave a comment