Expecting more upside for American stocks
American stock market’s bounce since early February hasn’t driven bullishness among market timers. It’s because a significant number of market timers keep themselves absolutely out of stocks. Considering a contrarian point of view, we can find it encouraging enough.
Today’s sentiment conditions differ from those, which dominated in January, when the stock market found itself in one of the most terrible calendar-year starts in American history. For instance, on January 22, even though the market had slumped 10%, there was still a sufficient number of bullish market timers. As followed from that, the market boasted sincere willingness to hit bottom.
As for today’s sentiment, fewer market timers have come back to the bullish bandwagon and this drops a hint at a probable rally. By the way, that’s partially back up by one of the most sensitive barometers of investor sentiment, the HNNSI
However, we shouldn’t neglect such a fact that short-term timers might appear to be right, especially when they’re getting coalesced around an extreme trading position.