The 2009 bull market, a skepticism (pessimism) driven rally, has yet to transition optimism. It's nowhere near a state of euphoria. Followers of sentiment, a small minority of investors, recognize that it hasn't. The bull market is still in tact as long as the majority remains skeptical or pessimistic towards stock. Followers of sentiment will get worried when pessimism transitions to persistent optimism, and sell when euphoria dominates the headlines. Sentiment is quantified by the computer in the Matrix according to the trends below (chart).
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Headline: Investors feel crummy about how expensive they've made stocks
Stock market experts have been warning investors that valuation levels have been troublingly high. Some would even argue that mania has taken over and investors are blissfully buying stocks at ever increasing prices.
But two surveys suggest that investors are very much aware of the high price they’re paying for stocks. In other words, they’re actually increasingly nervous as they buy stocks.
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.