Here’s one more reason why October is looking muddy for U.S. stocks
Consider the average recommended equity exposure level among these short-term timers (as measured by the Hulbert Stock Newsletter Sentiment Index, or HSNSI). This average currently stands at 23.2%, which is five percentage points above where the index stood at the beginning of September — when the Dow was higher than where it stands now. Since the normal pattern is for bullishness to rise and fall more or less in lockstep with the market, the market timers’ relative bullishness is an ominous contrarian sign.
Published:10/5/2019 9:29:41 AM