TIM Report: Sentiment Becomes More Bearish

According to the recent TIM (Trade Ideas Monitor) report and the TIM Sentiment Index (TSI), institutional brokers became more bearish over the last five trading days as the TSI decreased 5.0% from 57.32 to 54.46 (see previous post or youDevise website for additional information on the TIM report). For the five trading days ending July 1st, the number of new short ideas as a percentage of new ideas sent to investment managers increased to 30.98% from 22.07% one week earlier (see last week's post), but the intra-week short trend did fall off its high of 35.26%. To date, shorts represent 41.46% of all ideas this year.

As for individual securities in the U.S. and North America, Tyco Electronics (TEL), Intel (INTC), and Electronic Arts (ERTS) were the stocks most recommended as longs by institutional brokers, while Chemspec International (CPC), Bed Bath & Beyond (BBBY), and First Solar (FSLR) were most recommended as shorts. The energy, information, and consumer discretionary sectors had increased broker sentiment for the week, while utilities and health care had decreased sentiment.

Comments

[Larry House:]

The green shoots are wilting.

Jul 02 04:08 PM

[tobi:]

Finally. It is good to go back to sanity and some more realistic levels, hopfully in a clear move and not the sideways winding of june, which was nothing but nerv robbing uncertainty without any direction. Once the realistic level is there one can really ask "where to go from here". The sooner we see those the better, a 800 S&P 500 would be ideal simply not to break the rally but to bring people back on the ground. Then there finally will be a market where news are priced for what they are worth and not the "housing only fell .6 % month over month, bottom, bottom!" bogus..

Jul 02 07:11 PM