With global stock markets on the move, contrarians are becoming increasingly fearful because bullish stock market readings have recently expanded to the highest levels in more than a year and a half. The following is an extremely important piece because it shows this surge in the bullish readings on the chart below.
Stock market traders and investors should be aware, the bear may be about to come out of hibernation. Here is the latest Investors Intelligence report along with the all-important sentiment chart: “Modest additional index gains occurred last week as the primary indexes continue to trade around their best levels from 2012. They have been unable to follow the smaller-stock averages to all-time record highs.
Indicators remain overall bullish but more charts reached the levels of their prior tops so the short term risk remains high and intact. Those facts are noted by the advisors but only a few reacted with weekly shifts. The end result was ... bulls at lofty levels and showing a wide negative spread from the bears....
“With no change the bulls held at 53.2%, and almost up to clearly negative levels. They have increased considerably from mid-Nov's reading at 37.3%, which showed almost the same lack of optimism that occurred mid-June. Those were the two solid buying chances in 2012.
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Stock market traders and investors should be aware, the bear may be about to come out of hibernation. Here is the latest Investors Intelligence report along with the all-important sentiment chart: “Modest additional index gains occurred last week as the primary indexes continue to trade around their best levels from 2012. They have been unable to follow the smaller-stock averages to all-time record highs.
Indicators remain overall bullish but more charts reached the levels of their prior tops so the short term risk remains high and intact. Those facts are noted by the advisors but only a few reacted with weekly shifts. The end result was ... bulls at lofty levels and showing a wide negative spread from the bears....
“With no change the bulls held at 53.2%, and almost up to clearly negative levels. They have increased considerably from mid-Nov's reading at 37.3%, which showed almost the same lack of optimism that occurred mid-June. Those were the two solid buying chances in 2012.
Read More