Sentiment

Bears Are Waiting for Something to Break

Jun 29, 2022 2 min read

Investors Intelligence Bull/Bear Ratio (BBR) remained under 1.0 during the June 28 week at 0.82 for the ninth consecutive week. It has been bouncing around 1.00 since late February. In other words, it hasn't worked as a short-term contrarian indicator given that the S&P 500 has been falling since it peaked on January 3. However, the BBR might have signaled at least

Ed Yardeni

Bull/Bear Ratio Lowest Since March 2009!

Jun 22, 2022 2 min read

Bears started coming out of hibernation early this year. Now they are roaming all over the stock market. Here are the latest bearish sentiment readings, which are bullish from a contrarian perspective: (1) The Bull/Bear Ratio (BBR) was below 1.00 for the eighth consecutive week this week. It slipped for the third week to 0.60 this week—the lowest reading since early March 2009, which was when

Ed Yardeni

Well Below the 200-Day Moving Average

Jun 19, 2022 1 min read

Some widely followed technical and sentiment indicators suggest that the stock market is oversold and due for a rally. Consider the following: (1) The S&P 500 was extremely overbought last year. Around mid-year 2021, more than 90% of the stocks in the index were trading above their 200-day moving averages (dma). There has been a significant reversal of fortune since then with only 11.3% of the S&

Ed Yardeni

In the Event of Motion Sickness

Jun 19, 2022 1 min read paid

Below is the front cover of the latest Bloomberg Businessweek. It should be a very bullish contrary indicator for the stock market. In recent months, there have been plenty of signs of mounting bearish sentiment, which should be bullish from a contrarian perspective. However, fighting the Fed when the Fed is fighting inflation is not a good idea whether one is a contrarian or not. We still expect to see

Ed Yardeni

Bull/Bear Ratio Remains Under 1.0

Jun 15, 2022 2 min read paid

The Bull/Bear Ratio (BBR) remains bearish. It has been bouncing around 1.00 since late February. During the bull market from March 9, 2009 through January 3, 2022, a reading of 1.00 or less turned out to be a very good short-term and long-term buy signal from a contrarian perspective. That’s when investors could count on the Fed Put to save the day. That’s no longer

Ed Yardeni

Bull/Bear Ratio Remains Low

Jun 8, 2022 1 min read

Stock market sentiment remains bearish, which is bullish for longer-term investors with a contrarian streak. Consider the following: (1) Investors Intelligence Bull/Bear Ratio (BBR) was below 1.00 for the sixth successive week this week—slipping to 0.89 this week, after climbing the prior two weeks from 0.65 (the lowest since mid-February 2016) to 0.93 over the period. The BBR has been bouncing around 1.00