Josh Brown is right that sentiment is following the stock market’s price activity. Not the other way around. Beginning in March, investors reluctantly came to the table completely terrified. The long grind upward has produced today’s terrible contrarian sentiment readings.
But sentiment is not a timer, as these two guys make clear in their interesting back and forth about the current backdrop. Sentiment is a condition and it will be extremely over-bullish at the next important top, whenever that is.
Anyway, check it out. I enjoyed hearing two guys verbalize what is going on in my head now. We are not that smart and these guys know they are not that smart.
As but one of many dangerous sentiment charts, check out the NAAIM. Investment managers are in full performance chasing mode.
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