Who’s left to sell?
That’s the question I find myself asking as we finish up the 3rd Quarter today.
(We’ll discuss it all Monday night 6PM ET during our Live Monthly Charts Strategy Session)
Since the market peaked in February 2021, it’s been a slow grind lower for stocks all over the world.
We’re now approaching 20 months of this ongoing bear market.
It’s no longer a secret that stocks are going down.
You can see it in the Put/Call Ratio hitting levels last seen at the 2018 and 2020 market lows:
We’re at extreme levels of investors betting on lower stock prices vs those betting on higher ones.
For me, sentiment is NOT just one chart or one indicator.
It’s a weight-of-the-evidence thing.
So let’s keep going.
The Investors Intelligence Advisory Services show the fewest bulls since 2016.
That means we have fewer bulls among advisors today than during COVID. Talk about extreme:
Active managers are scared to death as well.
The National Association of Active Investment Managers (NAAIM) now shows that their exposure is down to 12.6% – which is below this summer’s lows and down to the lowest levels since March 2020:
And when it comes to Individual Investors, we see bears above 60% in back-to-back weeks for the first time IN HISTORY!
Here’s that chart:
Who’s left to sell?
That’s what I’m wondering.
Granted, for individual investors their cash allocation isn’t that high. It’s been much higher at previous bottoms.
And we can also include some additional data that does not support washout levels of sentiment.
That’s why this is a weight-of-the-evidence approach, and we don’t lean too much on any one indicator or any one chart.
At the end of the day, price is what pays.
So sentiment extremes or not, we still need to see prices do their thing, otherwise none of this means anything.
We will be discussing all of this Monday night during our Live Monthly Charts Strategy Session.
You don’t want to miss it!
Premium Members can register here, if you haven’t already.
We’ll get going LIVE @ 6PM ET Monday 10/3
If you don’t have access just call Mary: 323-421-7991 and she’ll set you up.
In the meantime, I can’t encourage you enough to check out what’s happening intraday over at our Swing Trader Pro.
Does all this sentiment stuff I mentioned above take too long to develop for your taste?
Do you have a shorter-term time horizon?
Well then check out this video I did with Kimmy this week showing just how she’s able to have such a high win rate. I’ve never seen anything like it.
She’s crushing it!
Her goal is to pull money out of the market every single day.
And not just a little bit of money, real cash, every day.
Want to talk more about how you can put Kimmy’s trades to work in your portfolio? Just give Mary a call at 323-421-7991!
Booking consistent gains is what it’s all about. And in this messy market, faster trading strategies like Kimmy’s can help you take those quick plays – all while resting easy once the bell rings at 4 p.m.