Sector sentiment is again warning about a short term top with an overbought signal caused by all sectors showing positive readings. The last time this happened was late July and early August. A short term top followed as expected. At the least, we should expect some mild consolidation to clear the overbought reading. Another […]
Two weeks ago, I mentioned that sector sentiment calculated from the Twitter stream was overbought. When this occurs a short term top is usually in place within a few weeks (almost always in one week). When it stretches to two weeks, sector sentiment stays overbought during the period. We’ve now gone two full weeks from […]
Last week, sector sentiment gleaned from the Twitter stream had every sector positive. When this occurs a short term market top materializes usually within the following week. Once in a while, the sectors will paint another week with all of them in positive territory, then the top comes. Basically, when every sector is being bought […]
Last week, sector sentiment from the Twitter stream gave a warning. It is showing an overbought condition where every sector has positive sentiment. When this has occurred in the past, it has almost always been followed by a short term top within a few days. At Downside Hedge I highlighted another indicator that has a […]
This past week saw traders buying the dip (well if you can call it a dip). If you look at the count of bullish stocks on the Twitter stream you can see that traders were buying more stocks as the market reacted to resistance near the 2300 level on the S&P 500 Index (SPX). This […]
A few weeks ago sentiment for the S&P 500 index (SPX) calculated from the twitter stream broke out higher from a triangle pattern. I mentioned that this usually indicates higher prices ahead. It took some time, but the market finally responded. Now we’re watching the confirming uptrend in sentiment. If it breaks expect a larger […]
Over the past three weeks (since the US election) we’ve observed a major rotation from safety into leading sectors by watching the bullish and bearish lists. Take a look at the bullish stocks on Twitter over the past 3 weeks and you’ll notice financials, consumer products, retail, and energy dominating the list. Now lets look at the list of […]
Sector sentiment from the Twitter stream is signalling that a short term top is near. In the past, we have almost always had a short term top within a few days when all sectors had positive sentiment. On the few instances that a top didn’t occur, the next week had all positive sectors again… then […]
Although Twitter sector sentiment predicted a short term top in the market last week, there are some encouraging signs popping up this week. First is breadth between the most bullish and bearish stocks on the Twitter stream. It is finally showing some positive momentum. The number of bullish stocks started to increase as soon as the […]
I’m seeing strong signs from the Twitter stream this week that everyone is simply waiting for something to happen. But sector sentiment is showing an overbought condition with every sector printing positive sentiment readings. Almost every time this happens it marks a short term top. The few times this indicator has failed, the market rallied […]