Chart of the Day: Opportunity > Risk

JC Parets
October 18, 2022

The Dow Jones Industrial Average is working on its 3rd straight week of gains.

In case you missed it, you have to see the look on Maria Bartiromo's face after I told her Friday that we're 4 months into a new bull market.

Priceless.

I think she was into it though. Check out the full clip on Fox Business here: Mornings with Maria

This weekend I published a note about how underrated I find the Dow Jones Industrial Average to be among traders and investors.

The Dow is not something I want to fight. In fact, I was specifically taught not to.

Make sure to check out some of my favorite Dow stocks to own right now.

But today I want to focus on sentiment. More specifically, the extremes in bearish sentiment and overall pessimism.

There is no one single poll or indicator that accurately measures sentiment. Trust me, I've searched far and wide for it over many years.

The best way I've learned to use sentiment is to aggregate it all together into a composite.

This chart below includes the AAII poll, measuring individual investors' attitudes, Investors Intelligence for Advisories, NAAIM for active managers, Volatility and Put/Call ratios.

When you combine them all together, we're currently at levels that we've rarely seen throughout history.

And as it turns out, each of those times was an amazing buying opportunity:

Are you betting that this time is different?

Do you NOT see more opportunity right now than risk?

We're buying stocks.

We could very likely already be 4 months into a new bull market.

Do you agree? Disagree?

Let me know. I love hearing from you.

We’ll be discussing it all tonight, Tuesday October 18th @ 6PM ET on our Live Mid-Month Conference Call.

Premium Members make sure to register here, if you haven’t already.

And ping me with any topics you also want me to make sure to cover.

Not a Premium Member Yet?

If you don’t have access to our Premium Conference Calls, email us here or call me: +1 (323) 421-7910

I don’t want anyone to miss tonight’s call.

We have a lot to discuss.

Email me and we’ll set you up.

 

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