Big Changes In Sentiment

JC Parets
August 14, 2024

We use sentiment to help put the behavior of the stock market into context.

When looking at markets, it's easy to see what stocks are doing. All you have to do is look.

But what are people thinking? That's what we want to know.

When everyone is bullish, it's hard for stocks to go up in price at the same rate. When everyone turns bearish, that's historically a great time to be putting money to work.

Coming into August, sentiment was running hot. The VIX was at 10, the put/call ratio was muted, newsletter writers were giving us some of their most bullish readings of all-time, and our sentiment composite was as complacent as it's ever been.

Boy did that change quickly.

We just saw the largest week over week spike in bears among individual investors since 2022, just as this bull market was getting started.

Look at that spike this week:

Meanwhile, those newsletter writers that were so bullish coming into August have completed disappeared.

We just saw the largest decrease in II bulls since Covid, which was over 4 years ago.

The last time newsletter writers got this bearish this fast, we went on to have to greatest 52-week period in the history of the U.S. stock market.

So if you're looking for a catalyst to get this next leg of the bull market started, look no further than the sentiment washout we just got over the past week.

That happened quicker than I thought.

There are plenty of opportunities from the long side right now.

And we'll be discussing them all on Monday night's LIVE Conference Call for Premium Members of ASC.

Premium Members make sure to REGISTER HERE. We'll get going LIVE @ 6PM ET on Monday August 19th. 

Not only will we take a look at the broad market, global equities, commodities, Energy, Gold and Interest Rates, but we'll also walk through my favorite trades right now, including details on entry points, price targets and risk management.

Not an ASC Premium Member? Click here to join us RISK-FREE.

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