Friday Market Sentiment
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
The sentiment levels have very quickly moved up to uncomfortably high levels for both the newsletter writers and the individual investors. Investor's Intelligence wasn't too concerned about this level of bullishness for the newsletter writers, but it seems to me this level of bullishness has happened too soon after reaching the lows in August. However, after such a bullish move by the Fed perhaps I'm being overly cautious.
Viewing the bullish vs bearish sentiment from the chart above seems a bit less alarming. The trend is working against stocks as the bulls increase and the bears receed, but still this is an unwelcome, sharp reversal.
That said, the Traders-talk.com message board polls that I track are still very bearish. VERY bearish. I consider 5-day readings of less than 100% fully long Bulls vs. fully short Bears Bullish. We're at 72% and have been lower, even as the market has rallied.
Check out the chart
http://www.traders-talk.com/mb2/index.php?act=Attach&type=post&id=5990
Full disclosure: I run traders-talk.com
Feel free to stop by. If you contribute you can link back to your blog.
Mark Young (Comment this)