Some Changes In Sentiment

A few weeks ago I was pointing out many of the the multi-year extremes in sentiment. Its only fair that I now point out some sentiment indicators that have come off extremes and are now  in neutral territory:

  • Rydex traders are still positioned slightly on the bearish side (almost neutral) but there has been a big move off of the extremes.

  • Newsletter writers tracked by Hulbert are 25% long the Nasdaq, which is a neutral reading

  • The AAII survey shows individuals on the bullish side.

  • The option ratios are still showing a lot of activity in puts but the put activity has backed off levels we were seeing two weeks ago.


The sentiment extremes we saw a couple of weeks ago are no longer present. However, we have not yet reached bullish extremes and many intermediate term measures are still showing excess levels of bearishness.

2 comments:

Anonymous said...

Our equity sentiment report is relatively
bullish for future returns: both the CBOE put/call data as well as
Investor Sentiment surveys are pointing to excess returns. This is not
surprising given the large sell-off we have seen in markets over the
last two months.
http://www.adsanalytics.com/report.php?report=sr&howto=howto-report

Rally Maturing said...

[...] is increasing evidence that this rally is no longer in its nascent stages. Last week, I laid out a few changes in investor sentiment showing investors moving away from their state of extreme [...]