“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”, John Templeton
Sentiment flow, another excellent standalone timing for US stocks, entered bear phase on 3/22 for a 28% annualized return. At minimum, it would have advised the bulls to sit on the sidelines for 7 weeks. #Matrix tracks sentiment for subs.
A couple of weeks ago, the experts (headlines) suggested investors were pessimistic. My response, more accurately the computer's response, was NO. Fast forward several weeks, the experts have gone mute on the subject, while the computer says, WATCH OUT investors are pessimistic (chart); Bull% (dark blue line) has entered strong pessimistic territory. Strong to extreme pessimism (concentration), a setup that's BULLISH rather than bearish as advertised by mainstream media, significantly increases the odds of stronger bottom in May-June.
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