Friday, July 8, 2016

Rising Skepticism Towards Stocks Is Bullish

Rising skepticism from the majority is BULLISH! Followers of Insights and Sentiment understand it. Those that don't either gave up reading or like getting their pockets picked after following 'common sense' headlines.

Investors baffled by 'unexpected' strength in US stocks should be following sentiment. Sentiment's leadership of price, a tendency largely misunderstood and ignored by the majority, makes it valuable timing tool for all (see Understanding Sentiment).

Headline: As the stock market hits new highs, Wall Street is getting more skeptical

On Friday, the S&P 500 surged past its all-time closing high, which was set at 2,130.82 on May 21, 2015.

Meanwhile, earnings for the S&P 500 (^GSPC) have been extraordinarily poor with Q2 expected to mark the fifth quarter in a row that earnings have decreased year over year.

Bank of America Merrill Lynch (BAML) analysts have actually cut their S&P 500 earnings forecasts to reflect no growth on 2016.



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