Sentiment

BBR Edges Up To 1.15

Sep 14, 2022 1 min read paid

We are predicting that the S&P 500 will remain range-bound for a while between the June 16 low of 3666 and the August 16 high of 4300. The index closed at 3946 today, around the middle of the range. Sentiment remains very bearish, which is bullish from a contrarian perspective: (1) The Bull-Bear Ratio climbed to 1.15 this week after falling the prior three weeks from 1.

Ed Yardeni

Reversal Days Signal Sideways Stock Market

Sep 8, 2022 1 min read paid

Stock investors don't know whether they are coming or going. They don't have much conviction. Yesterday, we observed that there are more market letters calling for a correction than either a big move up or down in the stock market. Reversal days seem to be occurring more frequently recently. Some days the market starts by moving down only to finish up. The next day, it goes

Ed Yardeni

BBR Drops Back to 1.0

Sep 7, 2022 1 min read

Investors Intelligence Bull-Bear Ratio (BBR) slipped this week for the third week, to 1.00 (chart below). It had advanced the previous six weeks from 0.76 to 1.64, which was the highest reading since early January. (It was at 0.60 during mid-June, which was the lowest since the week of March 10, 2009’s 0.56.) BBR readings of 1.00 or less tend to be associated

Ed Yardeni

Bull/Bear Ratio Rebounding

Aug 17, 2022 1 min read paid

Pessimism sells newspapers better than optimism. Pessimism also creates buying opportunities for optimists. Investors are no longer as bearish as they were eight weeks ago. From a contrarian perspective, as we’ve seen just recently, extreme pessimism tends to be bullish, unless the world really does come to an end, in which case, who cares? Here’s a quick update on Investors Intelligence Bull/Bear Ratio (BBR):

Ed Yardeni

Market Call

Aug 14, 2022 2 min read

The stock market has been rallying since June 16 on mounting expectations that the most widely expected recession of all times might be a no-show and that inflation is peaking. July's strong payroll employment report and peakish CPI and PPI readings suggest that the cat is out of the bag. That's confirmed by several technical indicators: (1) Breadth. On Friday, over 90% of the S&

Ed Yardeni

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

Ed Yardeni

Bull/Bear Ratio Falling; Powell Talking Tough

May 18, 2022 2 min read paid

The Investors Intelligence Bull/Bear Ratio (BBR) dropped further below 1.00 during the May 17 week, to 0.65 from 0.68 the prior week.

Ed Yardeni

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