But he also uses sentiment indicators (like put-call ratios, short interest and media coverage) in his analysis and applies contrarian logic.
The trend is clear for the short-term, sentiment indicators suggest no relief yet from the 2008 financial crisis.
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Consider the unusually extreme reading of various sentiment indicators, notably that of the American Association of Individual Investors (AAII).
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There is no precedence in my extensive backtesting where analysts were so bullish when my proprietary sentiment indicators were so bearish.
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Sentiment indicators are used by investors, both corporate and portfolio investors, as ways to measure when to put money to work.
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Charts are showing a bearish pattern, but price patterns are merely sentiment indicators and daily market sentiment is being influenced by rumors.
Meanwhile, several sentiment indicators that we follow are approaching levels that have been consistent with bottoms during various corrective phases since the 2009 market bottom.
One thing that is clear, in our opinion, is that it was not enough to work off momentum divergences, overbought internal conditions and bullish extremes on many sentiment indicators.
Sticking with the technical theme for a moment longer, the boys in the bull camp have been pointing out this week that the sentiment indicators have backed off of their extreme readings recently and that the market is no longer overbought.
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In the meantime, you may want to relinquish your mental choke hold on conviction in technical and sentiment based indicators.
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The week ends with a bang, as we get consumer sentiment and leading indicators, which should give us a new reading on the economy.
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The lack of reliability of various sentiment and technical indicators.
And while real estate and jobs data remain a fundamental drag on investor sentiment, other indicators show the US economy is at least on track to grow at the anemic forecasted 2.5% this year.
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To catch the full strength of these midterm-election advances, Harding looks for oversold conditions, bearish investor sentiment and momentum-reversal indicators.
Given the steel cage match ongoing between my analytical mind and experienced mind I decided to look at some simple indicators of investor sentiment.
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Of course, we look at many different indicators to gauge investor sentiment and market conditions.
According to the indicators I watch, negative sentiment is at a level which usually leads to a strong move to the upside.
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He uses a proprietary version of Elliott Wave theory and also relies on other technical indicators such as relative strength and sentiment measures.
With the yield curve steep, leading economic indicators still rising month to month and sentiment skewered skeptical, we have years of bull ahead.
It has a lot to do with the recent performance of the stock market, a pretty good measure of sentiment as well as one of the better leading indicators of real economic activity.
Since then, key indicators like employment, manufacturing data and consumer sentiment have continued on a downward trajectory.
High levels of bullish sentiment have been correlated with market reversals, but other indicators should be considered before making a market forecast.
Though bullish sentiment is at a five-week low and bearish sentiment is at a five-week high, both indicators remain close to their historical averages.
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The leading indicators also were up last week with the weak consumer sentiment the primary negative.
The U.S. economy also continues to put out leading indicators that at best are only mixed, easing bullish sentiment that would tend to push gasoline prices up.
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European stocks finished higher Thursday, boosted by the continued run in strong economic indicators out of the U.S., improving sentiment about the health of the world's largest economy.
U.S. economic data due for release Thursday includes the third-quarter GDP estimate, the weekly jobless claims report, the Chicago Fed national activity index, the University of Michigan consumer sentiment survey, the U.S. house price index and leading economic indicators.
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