Mid-week market update: For several weeks, sentiment surveys such as AAII and Investors Intelligence have signaled extreme levels of bearishness seen at past market bottoms. However, some observers have played down the sentiment surveys because indications of positioning are inconsistent with extreme fear. As an example, funds are still pouring into the Cathie Wood's Ark Investment ETFs even as the speculative growth vehicles tank. That's not the sort of behavior seen at washout bottoms. On the other hand, I have received a flood of emails and other messages of concerns about the stock market indicating growing fear and panic.
To resolve the dilemma, my publication "How to spot a market bottom" published on March 19, 2022 offered a useful checklist that I'll go through.
The full post can be found here.
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A market bottom checklist update
May 11, 2022 at 16:18 PM EDT