Record Extreme Sentiment

1/?Sentiment is Near a Record Extreme

Contrary to the popular opinion, that investor sentiment is overwhelmingly bearish and deeply depressed, based upon the Speculative / Conservative Ratio developed by Peter Elides, investor sentiment is actually challenging its all-time record extreme. The a ratio compares the trend of the Nasdaq 100 index to the Dow Jones Utility index. When the ratio is rising, it means that investor demand for speculative growth stocks is dominating demand for conservative dividend paying stocks. The ratio first reached a climax at the height of the Tech Bubble in March 2000, and again in November 2021. The latest high was achieved in September 2023.

2/ What Breadth Thrust?

There has been a plethora of articles posted on social media referencing the great importance of the so-called Zweig “Breadth Thrust” signal. Indeed, we are strong proponents of the notion that the quality of a bull market advance improves or deteriorates in direct proportion to the number of issues that are participating in said advance.

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