• 252 days Will The ECB Continue To Hike Rates?
  • 252 days Forbes: Aramco Remains Largest Company In The Middle East
  • 254 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 654 days Could Crypto Overtake Traditional Investment?
  • 658 days Americans Still Quitting Jobs At Record Pace
  • 660 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 663 days Is The Dollar Too Strong?
  • 664 days Big Tech Disappoints Investors on Earnings Calls
  • 665 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 666 days China Is Quietly Trying To Distance Itself From Russia
  • 667 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 670 days Crypto Investors Won Big In 2021
  • 671 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 672 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 674 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 674 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 677 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 678 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 678 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 680 days Are NFTs About To Take Over Gaming?
Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

The Sentimeter: 9.22.13

The Sentimeter remains in neutral territory. Two weeks ago, the "dumb money" was extremely bearish, and this was a bull signal. Buying arrived where and when it should have. This past week, Federal Reserve's announcement that they were NOT taking the punch bowl away moved the SP500 to all time highs. The bears of two weeks ago were left on the sidelines hoping to get a dip so they can chase prices higher.

Yet, by the end of the week, didn't it seem like Bernanke fumbled the ball? Why was the taper off the table when he had told the markets for months that they were going to start with a measly $15 billion dollar reduction per month? Is the economy that weak? Has Bernanke lost all credibility? The markets reversed all of the "taper off" gains by the week's end.

While we can speculate what it all means, the truth is that shallow dips, like we had 3 weeks ago, lead to marginal 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 -- shallow dips and marginal new highs!!

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?). The current state of equity market investor sentiment is NEUTRAL.

Sentimeter: 9.22.13
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