Sentiment Extremes Signal Likely Correction In US Stock Market

One of my favorite indicators for identifying potential corrections in the stock market has just triggered the 4th extreme reading of below 0.60 on the Put-to-Call Ratio in what I refer to as a cluster of readings (a series of sub 0.60 readings that occur in relative close proximity without a substantial correction while the [...]

Dec 16, 2016 2:04pm|Categories: Equity Market Analysis|Tags: , , , , , , , |Comments Off on Sentiment Extremes Signal Likely Correction In US Stock Market

Using Sentiment Extremes to Predict Stock Market Corrections (video)

A detailed look at various measures of bullish or bearish sentiment among stock market participants & how to use that data to predict major turning points in the stock market. This video also highlights several recent extreme bullish sentiment readings & well as a look at the historical performance of the stock market following similar [...]

Nov 29, 2016 12:51pm|Categories: Equity Market Analysis|Tags: , , , , , |3 Comments

AAII Sentiment Update

Here's the updated SPY chart with the AAII bull/bear spread extremes.  Yesterday's survey results came in once again above the +18% extreme threshold for the fourth consecutive week.  For those new to the site, I've discussed how these extreme bullish and bearish readings often precede significant corrections and rallies in the stock market.  Those previous [...]

Jul 25, 2013 12:05pm|Categories: Educational, Equity Market Analysis|Tags: , |Comments Off on AAII Sentiment Update

Extreme Bullish Sentiment Continues

Today's release of the weekly AAII Sentiment Survey shows the third consecutive extreme bullish reading with a 26.5% spread on the Bull-Bear Spread.  In updating this chart in real time following the extreme readings over the last couple of weeks, I am pointing out each extreme (18% or higher) reading as they occur.  However, keep [...]

Jul 18, 2013 2:32pm|Categories: Equity Market Analysis|Tags: , |Comments Off on Extreme Bullish Sentiment Continues

Dual Sell Signals Confirmed

I've recently discussed two of my most reliable longer-term sell signals: The AAII Bull/Bear Spread Extremes as well as the $NAAD simple trendline buy/sell indicator (click on either to see the previous charts and discussion).  In the last update to the $NAAD indicator about a week ago, I pointed out that a sell signal was [...]

Feb 20, 2013 11:30pm|Categories: Equity Market Analysis|Tags: , , , , |Comments Off on Dual Sell Signals Confirmed

Sentiment Extreme Update

I wanted to make an update to the recent post made on January 10th that highlighted the track record of major buy and sell signals based on extreme bull-bear spread.  As was discussed in that post, bullish and bearish extremes (+/- 18% or higher) often come in clusters, as the sentiment extremes can persist for [...]

Feb 1, 2013 12:16pm|Categories: Equity Market Analysis|Tags: , |Comments Off on Sentiment Extreme Update