Do You Still Hate the Market?


For the past two weeks, traders have hated the market.

And they were right, because stocks dropped and the VIX hit a 13-month high.

But with the market rallying off the January 24 SPX low at 4222, the mood has brightened a bit this week.

SPX Bulls Coming Back to the Party

Our survey has not had more bulls than bears since January 2, 20221. So we can say our community has been pretty accurate in terms of calling the action.

Now, 59% of surveyed traders are bullish, which is just slightly below the long-term average of 63%.

Bitcoin Sentiment Split

Bitcoin has bounced a bit from the January 23 lows, when sentiment bottomed out at 34%.

Now, the crowd is split 50-50 between bulls and bears.

Apple Bulls Return After Earnings

Apple (AAPL) delivered a monster earnings report after the close Thursday and the stock popped nicely. So the mood has gotten much more positive, with 67% of surveyed traders saying they are bullish for the next 30 days.

Feeling About Tesla Perk Up

Tesla (TSLA) is down almost 20% year-to-date, and that appears to be attracting some traders.

55% of surveyed traders are now bullish, up from just 32% two weeks ago.

Gold Bulls Step Away

Gold struggled last week, so sentiment on gold soured once again. Now just 53% of surveyed traders are bullish on gold.

Traders Still Love Oil

Oil has been the place to be in 2022, with XLE up 18.3% and OIH up 23.0%.

What Happens Now?

For two weeks, we asked the question "Does Negative Sentiment Mean We Are Bottoming Out?"

For now, the answer is yes.

Now with sentiment in more neutral territory, it will be interesting to see if the market can creep crawling higher.

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