Market Sentiment

Wednesday, January 02, 2008 | 03:00 PM

As the indices accelerate to the downside -- the Dow Industrials are off 240 points as I type this -- its as good a time as any to look at the current market sentiment.

These provide a snapshot into when traders and investors get too greedy or fearful. Typically, you can use these measures as a useful short term metric for timing entries and exits. 

And, these data points are much more reliable than the typical anecdotal sentiment discussions: "markets should selloff (rally), 'cause everyone I know is bullish (bearish)."


 CBOE Equity & Index Put/Call Ratio



AAII Investor Bullish Sentiment Survey



AAII Asset Allocation Survey


What do these charts suggest?

This sentiment data implies that bearishness is getting very negative. Its not at the point where a rally is absolutely imminent, but we are slowly moving in that direction.



Here's our full report today: (click to open the full PDF)


For those of you who haven't signed up yet, here's the code for the free trial:

Go to the Fusion IQ home page , then select Subscribe. On the signup page, you will see a line that says Discount Code --  enter "BIGPICTURE07" and click on update.  The first 30 days trial is free, but you will need to enter a credit card number -- as long as you cancel before 30 days hence, you won't get billed.


Wednesday, January 02, 2008 | 03:00 PM | Permalink | Comments (23) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Market Sentiment:


Close over or under 13k???

Over, and not because of any fundamental reason. The plungers are warming up as we speak......

If it does close below 13k then I have to expect some wildly optimistic news out after the close..

What say You


Posted by: michael schumacher | Jan 2, 2008 3:25:14 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™