Market sentiment has been downright nasty during this bull market. And sentiment-focused analysts like Ryan Detrick have correctly highlighted this as a major catalyst for higher equity prices along the way. No arguments there; the slow trickle of cash into the market has reduced volatility and kept pull backs in check.
And this theme may continue for some time, especially if funds (and investors) begin to deploy capital in an effort to play catch up and/or market sentiment turns around slowly.
That said, I woke up this morning and something about several headlines struck me as a bit silly. Here’s a sampling:
Why The Jobs Report Points To The Beach
We Are About To Enter The Greatest Bull Market In 85 Years
Why The Next Market Milestone Could Come This Week
Millionaire Population Soars To 16 Million Households
Billionaires Who Could Buy Your Town
The headlines today seem decidedly more bullish. And, for what it’s worth, Twitter bears seem a bit more reserved today. Several analysts and talking heads are out calling for higher prices, greatest bulls, and laying on beaches. And, by the way, do you know who could buy your town?
School is out, summer is here, and folks are feeling better. I get that (and share in that enjoyment). But I’m calling attention to these and other headlines as I think short-term market sentiment may be ticking higher. My contrarian caution radar begins to flash when investors start looking up. Especially after a weekend to figure it all out (insert lol).
It’s worth noting that markets often have trouble with big round numbers. Not so much getting there, but breaking through and holding above on the first push higher. Perhaps it’s time for a retest of that breakout?
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
