The Master Sentiment Indicator (MSI) Still Point To Higher Prices

Oct. 25, 2022 1:19 PM ET
Michael James McDonald profile picture
Michael James McDonald


  • The Master Sentiment Indicator is at its second most extreme bearish reading in fifteen years. This is great news if you are a contrarian.
  • The MSI is composite indicator made by combining eight classic sentiment indicators with long term track records, including the puts and call ratios and AAII, into one.
  • There is one caveat, however.

Business on Wall Street in Manhattan

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We believe in the theory of contrary opinion and the Sentiment King focuses on studying and measuring investor sentiment. Our entire series of articles covers this subject in various ways.

This is a follow-up to the

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Long Term View of the MSI (Michael

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Shorter Term View of the MSI (Michael McDonald)

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The MSI and a Table Ranking Its Components (Michael McDonald)

This article was written by

Michael James McDonald profile picture
Michael James McDonald is a stock market forecaster, author and former Senior Vice President of Investments at what is now Morgan Stanley. He is a long-term advocate of the theory of contrary opinion and the measurement of investor sentiment when forecasting price direction.His first book, " A Strategic Guide to the Coming Roller Coaster Market" was published in June of 2000, three months before the top of the dot comm market. On its cover was written, "How a new model of the stock market predicts the end of the 18-year bull market (1982-2000) and the beginning of a new era." The "new era" was to be a long-term (roller coaster) trading range market, which did materialize between 2000 and 2009.Then, on August 31st, 2010, in a SA article titled: "The 10 Year Trading Range Is Over - The 'Final Stampede' Has Begun", he called an end to this trading range market and the beginning of another long-term bull market, which also came about. Through his company the Sentiment King, he continues to study and do what he loves - research and attempt to successfully forecast major stock trends - and help others see them too.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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