Market Sentiment Becomes More Bullish

According to the recent TIM (Trade Ideas Monitor) report and the TIM Sentiment Index (TSI), institutional brokers increased 4.5% from 51.70 to 54.03 (see previous post or youDevise website for additional information on the TIM report). For the five trading days ending July 9th, the number of new long ideas as a percentage of new ideas sent to investment managers increased to 74.10% from 60.84% one week earlier (see last week's post). While the intra-week trend did fall, it later rebounded. To date, longs represent 58.64% of all ideas this year.

As for individual securities in the U.S. and North America, Western Union (WU) and DryShips (DRYS) were the stocks most recommended as longs by institutional brokers, while U.S. Steel (X) and Morgan Stanley (MS) were most recommended as shorts. The information technology, materials, and consumer discretionary sectors had increased broker sentiment for the week, while health care and energy had decreased sentiment.

Comments

[coldcall:]

What does that mean exactly? If Im not hallucinating the markets continued to fall last week. Frankly I couldnt give a toss what investment bankers tell some anonymous researcher. Actions speak louder than words, and the majority of action last week was downstream.

Jul 12 06:39 AM

[Don V.:]

institutional brokers better research their recommendations more. These recommendations are stocks that are going nowhere and have been losers for quite awhile.

Jul 12 09:09 AM

[I need more...:]

Is this an article fro the Onion? Usually their sarcastic articles are a lot funnier. The conclusion is pretty funny though.

Jul 12 10:56 AM

[HALROW:]

OCNF is a stock working on climbing back on top as evident by the last
2 press releases on vessel purchases to increase the shipping fleet
2010 will be the big breakout year for Ocean freight inc....the greeks
never give up ,they just keep growing and defying bad wallstreet
outside bullshit......just wacth this OCNF bring in earnings in the next
few quarters from here !

Jul 12 11:32 AM

[seer:]

as long as oil keeps low, and its good for the economy, but bad for stocks the market will head lower. i dont see how opec and other cartels will let that happen too long . i still am bullish on oil , although its hard to say when it will turn around. more positive news about the econmy would be very helpful.

Jul 12 12:06 PM

[Mad Hedge F...:]

Only if you hold your charts upside down. Every once in a while I stumble across a chart which is so clear, so vivid, so unequivocal in its implications, that it lifts the investment fog. This is that chart. Drawn up by stockchart.com’s Arthur Hill (see www.madhedgefundtrader... ), it shows that we are going to spend the rest of our summer probing for the bottom right hand shoulder in a screamingly obvious “head and shoulders” pattern. It gives a range of possible bottoms from 850 all the way down to 666 by the end of August. The chart fits my own fundamental scenario like a hand in Michael Jackson’s glove (see “The Worm Has Finally Turned” at www.madhedgefundtrader... ). Soaring unemployment, terrible earnings reports, collapsing commodity prices, a catatonic consumer, real estate of every flavor in free fall, and tidal waves of government spending are not what bull markets are made of. Did I mention the weather is terrible? Every feeble, half hearted, low volume rally we saw this week pushed us closer to the edge of the cliff. The charts of every stock and commodity market in the world, rolling over in lockstep like a thirties Busby Berkeley musical, gives you all the smoking gun confirmation you need. Hold on to those shorts as if your life depended on it.

Jul 12 12:22 PM

[I need more...:]

I would only add the fundamentals are even more stark that your chart.


On Jul 12 12:22 PM Mad Hedge Fund Trader wrote:

> Only if you hold your charts upside down. Every once in a while I
> stumble across a chart which is so clear, so vivid, so unequivocal
> in its implications, that it lifts the investment fog. This is that
> chart. Drawn up by stockchart.com’s Arthur Hill (see www.madhedgefundtrader...
> ), it shows that we are going to spend the rest of our summer probing
> for the bottom right hand shoulder in a screamingly obvious “head
> and shoulders” pattern. It gives a range of possible bottoms from
> 850 all the way down to 666 by the end of August. The chart fits
> my own fundamental scenario like a hand in Michael Jackson’s glove
> (see “The Worm Has Finally Turned” at www.madhedgefundtrader...
> ). Soaring unemployment, terrible earnings reports, collapsing commodity
> prices, a catatonic consumer, real estate of every flavor in free
> fall, and tidal waves of government spending are not what bull markets
> are made of. Did I mention the weather is terrible? Every feeble,
> half hearted, low volume rally we saw this week pushed us closer
> to the edge of the cliff. The charts of every stock and commodity
> market in the world, rolling over in lockstep like a thirties Busby
> Berkeley musical, gives you all the smoking gun confirmation you
> need. Hold on to those shorts as if your life depended on it.

Jul 12 01:07 PM

[dcb:]

Yesterday Mr. Obama asked for more time patience from the public from regarding the economy. Personally, I do not believe Mr. Obama's policies deserve more time, they are misguided, driven by special interests, not directed towards the root of the problem , will actually make the economy worse, and rip off taxpayers for wall streets benefit.

He has abandoned the policies he stated he stood for while running for election at every chance when faced with industry pressure. He has allowed wall street to manipulate the markets increasing borrowing costs, driving up the price of oil , delaying recovery.

He has knowingly talked about green shoots when there were none, creating false expectations. If we wanted a president we knew would lie to use we would have kept bush.

He has spent trillions bailing out wall street to keep credit flowing while American's need help to reduce debts.

He has staffed the White house with wall street insiders.

If you believe, like I do, that Mr. Obama needs to change course and has had enough time I urge you to write the white house explaining why he has had enough time, and why he doesn't deserve more. Below is the link:

whitehouse.gov/con.../

Jul 12 01:43 PM

[Moon Kil Woong:]

I think this just means the brokerages continue to force feed junk they want to dump to their clients. Apparently, they feel losers never learn. If they remain clients I guess they could be correct.

After all, aren't losers rewarded in this market? The government continues to support the most aggregious corporate financial market losers who still get to play in the market. No wonder they never learn.

If you believe this market is so chipper, buy some CIT bonds.

Jul 13 03:56 AM