Wednesday, May 11, 2016

Investors That Ignore #Sentiment Are Flying Blind #USStocks

One of history's most hated US stock market rallies continues to defy expectations of the public and 'experts' often warning of impending doom (see headline). The only expert worth following, the message of the market, encourages the minority to buy and sell when the majority is bearish and bullish, respectively. Review of Sentiment, a weekly report based on trends of price and sentiment, shows subscribers why the majority of the public is a day late and dollar short in terms of timing US stocks.

Headline: Bank of America Strategist Warns of Imminent 'Vortex of Negative Headlines' Sending U.S. Stocks Plummeting

Markets are quiet right now. Too quiet.

The Chicago Board Options Exchange's Volatility Index, a measure of implied volatility, is near its lowest levels of the year. It's been over a month since the S&P 500 moved more than 1 percent in either direction. And all the worries that people were really anxious about earlier this year—from rising corporate defaults to a Chinese hard landing and central banks running out of ammunition—have mostly been put on the back burner.

Yet some strategists say this calm belies a storm.



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