Above is a chart of a sentiment survey. Various sources of sentiment data measure bulls, bears and neutral investors.
A simple calculation of the bulls minus the bears shows what the markets are feeling.
The challenge with these indicators is that at tops,
sentiment is more difficult to read. At bottoms, this is a much better indicator. Bottoms are made on fear and tops are made on hope. As anyone in marketing will tell you, fear (or avoiding pain) is a much more powerful motivator.
That's one reason we've been recommending paying some attention to BitCoin and Cryptocurrencies. Please check out the video below. Usually by the time they bring them back up in the news, the move has already
started. And in the innovation curve, there's an argument to be made that we're still early with this technology.
Thanks!
