Last night was our LIVE Monthly Charts Strategy Session for Premium Members of ASC Research.
This 2-times per month LIVE event is one of the biggest reasons why most of the world's largest financial institutions that you've ever heard of come to Allstarcharts for help making big decisions in the market.
One chart that really stood out to me, especially considering where we are in the cycle, is just how many bears there are among individual investors.
In fact, despite the new all-time highs in the S&P500, Dow Jones Industrial Average, Nasdaq100 and Russell2000 Indexes, there are somehow more bears than bulls.
How is that even possible?
The American Association of Individual Investors polls their community each week asking them how they feel about the stock market over the next 6 months. They've been conducting this poll since 1987, so we have a lot of data.
As you can see in the chart, despite how strong the market has been, and the fact that we're in the middle of a raging bull market, the spread between bulls and bears is the lowest it's been all year.
Individual investors are very much a group that we like to fade, particularly at extremes. So the fact that individuals are as pessimistic as they are, should be treated as a tailwind for stocks, by our work.
We take all the sentiment data out there, including newsletter writers, active investment managers and other groups, and then aggregate them all to formulate a weight-of-the-evidence conclusion about current market sentiment.
If you're not already a Premium Member of ASC Research, you can sign up here, or feel free to contact Mary or give her a call +1 (323) 421-7910 and see if you have any credits that you can use to get a discounted, or even FREE subscription.
Check out last night's LIVE video conference call, download the slides, and review the details for each of the trade ideas RISK FREE by clicking here.
