FYI: Sentiment conditions on Wall Street are flashing short-term danger signs.
That’s because the mood has shifted from the extreme pessimism that prevailed in late December to nearly as extreme optimism today. Some call current conditions a “slope of hope.”
Consider the average recommended equity exposure among the Nasdaq-oriented market timers I monitor (as measured by the Hulbert Nasdaq Newsletter Sentiment Index, or HNNSI). In late December, this average was lower — at minus 72.2% — than at almost any other time since I began collecting data in 2000.
That’s why contrarians, in late December, were forecasting a powerful rally.
Regards,
Ted
https://www.marketwatch.com/story/the-stock-market-is-careening-down-a-dangerous-slope-of-hope-2019-02-15/print
