Category: Investor Sentiment
Investor Sentiment is about investor behavior and their oscillation between fear and greed.
-
Observations of the stock market downtrend
In the last observation I shared about the stock market, “The stock market trends up with momentum,” we saw the stock market reverse back up with strong momentum. The S&P 500 stock index had declined about -7%… Read More
-
The stock market trends up with momentum
When the stock market indexes swing up or down 1% or more I try to share my observations of the directional trend and changes in volatility. Continuing from my observation yesterday in Observations of the stock market… Read More
-
Here comes the volatility expansion
Nine days ago in VIX level shows market’s expectation of future volatility I shared an observation that the implied volatility VIX, a measure of expected future volatility that is implied by option prices, had reached an extremely low… Read More
-
Stock market investor optimism rises above historical average
“Optimism among individual investors about the short-term direction of the stock market rebounded, rising above its historical average.” The AAII Investor Sentiment Survey is a widely followed measure of the mood of individual investors. The… Read More
-
Investor sentiment gets more bearish
Investor pessimism shifted to an unusually high level for the time this year. It spiked up from 24% bearish to 41%. Bearish investor sentiment is now as high as it was in April after the… Read More
-
Is this correction and volatility normal?
With perfect hindsight, we now all know that January 26th was the recent price peak in the U.S. stock market. Since then, the S&P 500 has declined about -10% and the Dow Jones Industrial Average… Read More
-
Betting on price momentum
“Don’t fight the tape.” “Make the trend your friend.” “Cut your losses and let your winners run.” “These Wall Street maxims all mean the same thing—bet on price momentum. Of all the beliefs on Wall… Read More
-
Stock market indexes lost some buying enthusiasm for the day
Buying enthusiasm reversed from positive to selling pressure today after the first hour. I observed notable selling volume at the close, which was the opposite of what I pointed out last Thursday.The S&P 500 Stock… Read More
-
Is this the Inflection Point for Stocks?
As if the election result wasn’t enough, the U.S. stock market has surprised most people by trending up since last November. But, it has been stalling since March. The S&P 500 drifted down about -3% into… Read More
-
You want to be fearful when others are greedy?
“You want to be greedy when others are fearful. You want to be fearful when others are greedy. It’s that simple.… ” – Warren Buffett Investors are emotional and we can profit from it. Though… Read More