Sentiment indicators

Sentiment indicators

The general feeling of investors about the state of the market, such as whether they are bullish or bearish.

Market Sentiment

A subjective measure of how investors are feeling about a security or market. Generally speaking, market sentiments are positive when stock prices are going up and negative when they are going down. Because feelings sometimes change more slowly than a market's underlying fundamentals, market sentiment helps explain why securities have a tendency to become either overvalued or undervalued. Some investors plan to make investment decisions in a way that disregards market sentiment, while others attempt to profit from it. See also: Crowd theory, Subjective probabilities, The Theory of Moral Sentiments.
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According to the Centre, the level and fluctuations of the economic sentiment indicators in construction and consumers indicates that trust is not been restored in a uniform manner in all economic sectors, thus creating risks for the economic activity in the coming quarters.
It's worth noting the ESI has been significantly less volatile than the other sentiment indicators throughout this downturn.
The US Dollar recently hit fresh 2009 lows against the Euro and other key currencies, but several sentiment indicators suggest that the Greenback may be near a major bottom.
In fact, sentiment indicators, chart formations and market internals--measurements of stock price advances and declines--have made "the market, particularly the Nasdaq leaders, vulnerable," As a result, analysts recommend that investors do not stand by tech stocks alone.
The number of traders shorting the market has changed very little from sentiment indicators over the past year with 18% stating they won't be making any short sales to make profits and 61% claiming that up to half their trades would be on the short side of the markets for the remainder of the year.
He believes retail traders would be much more successful if they adopted a longer-term, contrarian approach, utilizing sentiment indicators to position themselves at the beginning points of major trends.
From my perspective, IBM's sentiment indicators are pretty complacent.
The stock was struggling with overhead resistance at the 20 level following a long run higher, and all the sentiment indicators pointed to the possibility that CY could eventually break above this region.
While the trend is your friend, there are significant roadblocks for both securities on the technical front to make me worry, and without a convincing amount of sideline money being revealed in the sentiment indicators, I feel that both NUE and MT could be flat to lower in the coming months.
Yes, there is a fair share of red in the list above; I used that to signal sentiment indicators that I feel have potential negative implications.
I don't want to completely rule out a rebound for AMD at this point, as the sentiment indicators are primed for a nice contrarian play.