This is the premium account for SentimenTrader. We focus on helping traders and investors take advantage of extremes in sentiment across markets.
Breadth momentum has been so strong and persistent that many indexes and sectors are showing hugely stretched McClellan Summation Indexes. Typically poor short-term returns, good long-term ones.
AAII bears down to 20%. Scrolling through various markets via the Backtest Engine, one of the worst markets with so few bears was junk bonds. Not horrible, but the worst among most of the ETFs we follow.
Amazon is nearly 40% below the average Wall St analyst price target. The only time in 15 years it has been more undervalued (in a sense) was a few days in 2008.
Most selling climaxes this week in at least 25 years. These are the # of S&P 500 stocks that hit a 52-week low then reversed to close higher than the close from the prior week.
Here is the S&P's intraday pattern after other negative gaps to start a New Year.