Permabulls always say everyone's bearish.<\/p>\n
And\u00a0permabears\u00a0always say everyone's bullish.<\/p>\n
Neither side provides evidence for their views.<\/p>\n
So let's see how traders are feeling after what may have been a change in complexion yesterday.<\/p>\n
With hot momentum stocks like NVIDIA <\/strong>(NVDA) and Tesla<\/strong> (TSLA) taking beatings, let's measure the market's mood for insights on where things may go:<\/p>\n 1) VIX Spread – Bullish<\/strong><\/p>\n The VIX is ticking up, but the 3-month VIX spread is at +3.83, which indicates traders are still not concerned with volatility.<\/p>\n This is a bullish reading.<\/p>\n 2) CNN Fear & Greed Index – Bullish<\/strong><\/p>\n The Fear & Greed Index is at 75.<\/p>\n F&G operates on a 1-100 scale, and 75 is in extreme greed territory.<\/p>\n 3) AAII Sentiment – Neutral<\/strong><\/p>\n The latest AAII Sentiment Survey shows that 38.5% of individual investors are bullish, which is right in-line with the long-term average of 38.5%.<\/p>\n This is Neutral.<\/p>\n 4<\/strong>) CBOE Equity Put-Call – Bullish<\/strong><\/p>\n The CBOE Equity-Put Call ratio is at 0.62 with a 3-day moving average of 0.61. This indicates higher-than-average bullishness.<\/p>\n 5) ISE Sentiment – Bearish<\/strong><\/p>\n The ISE Sentiment Index is at just 92 (92 calls for every 100 puts) this afternoon – which is a bearish reading.\u00a0 And the 10-day moving average is 81.3.<\/p>\n This also indicates bearish sentiment.<\/p>\n Conclusion<\/strong><\/p>\n Out of 5 sentiment indicators, we have 3 bullish, 1 neutral, and 1 bearish.<\/p>\n Plus, keep in mind that the ISE Sentiment Index seems to always read bearish no matter what's going on in the market. So that 1 bearish indicator doesn't count for much.<\/p>\n So just as a broken clock is right twice a day, the permabears are now right: traders are indeed very bullish right now.<\/p>\n And when bullish sentiment meets stretched technicals, the bears tend to have a better chance at mounting successful attacks.<\/p>\n","protected":false},"excerpt":{"rendered":" Permabulls always say everyone’s bearish. And\u00a0permabears\u00a0always say everyone’s bullish. Neither side provides evidence for their views. So let’s see how traders are feeling after what may have been a change in complexion yesterday. With hot momentum stocks like NVIDIA (NVDA) and Tesla (TSLA) taking beatings, let’s measure the market’s mood for insights on where things may go: 1) VIX Spread – Bullish The VIX is ticking up, but the 3-month VIX spread is at +3.83, which indicates traders are still not concerned with volatility. This is a bullish reading. 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 75. F&G operates on a 1-100 scale, and 75 is in extreme greed territory. 3) AAII Sentiment – Neutral The latest AAII Sentiment Survey shows that 38.5% of individual investors are bullish, which is right in-line with the long-term average of 38.5%. This is Neutral. 4) CBOE Equity Put-Call – Bullish The CBOE Equity-Put Call ratio is at 0.62 with a 3-day moving average of 0.61. This indicates higher-than-average bullishness. 5) ISE Sentiment – Bearish The ISE Sentiment Index is at just 92 (92 calls for every 100 puts) this afternoon – which is a bearish reading.\u00a0 And the 10-day moving average is 81.3. This also indicates bearish sentiment. Conclusion Out of 5 sentiment indicators, we have 3 bullish, 1 neutral, and 1 bearish. Plus, keep in mind that the ISE Sentiment Index seems to always read bearish no matter what’s going on in the market. So that 1 bearish indicator doesn’t count for much. So just as a broken clock is right twice a day, the permabears are now right: traders are indeed very bullish right now. And when bullish sentiment meets stretched technicals, the bears tend to have a better chance at mounting successful attacks.<\/p>\n","protected":false},"author":2,"featured_media":4100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[302,45,365,304,280,330,47,8,476],"class_list":["post-8405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-aaii-sentiment","tag-cboe-equity-put-call","tag-cnn-fear-greed","tag-ise-sentiment","tag-put-call","tag-put-call-ratio","tag-sentiment","tag-stocks","tag-weekly-sentiment-update"],"yoast_head":"\n