| Followers | 679 |
| Posts | 140848 |
| Boards Moderated | 36 |
| Alias Born | 03/10/2004 |
Friday, August 20, 2021 9:28:29 AM
A Shocking Update on Sentiment
By: SentimenTrader | August 20, 2021
Politics is playing havoc with how people are feeling about everyday life, and it's even overriding how they usually feel about topics that aren't necessarily as influenced by our representatives.
The preliminary Consumer Sentiment survey for August by the University of Michigan showed a stunning drop. Not only is the survey relatively low, it was the biggest miss in 20 years relative to economists' expectations. Granted, this could change substantially by the time the official reading is released in a couple of weeks.
This is an abnormally low reading given how the S&P 500 has fared over the past year. There is a positive correlation between the 12-month rate of change in the S&P and the Consumer Sentiment readings, and this month really stands out as an outlier.
Assuming the S&P doesn't completely fall apart in the coming weeks, this month's reading would be the 2nd-lowest all-time for any month when stocks closed at a 12-month closing high. Only December 1991 would have a lower reading.
A low Consumer Sentiment reading during a month when the S&P closed at a new high tended to be a good sign.
Read Full Story »»»
DiscoverGold
By: SentimenTrader | August 20, 2021
Politics is playing havoc with how people are feeling about everyday life, and it's even overriding how they usually feel about topics that aren't necessarily as influenced by our representatives.
The preliminary Consumer Sentiment survey for August by the University of Michigan showed a stunning drop. Not only is the survey relatively low, it was the biggest miss in 20 years relative to economists' expectations. Granted, this could change substantially by the time the official reading is released in a couple of weeks.
This is an abnormally low reading given how the S&P 500 has fared over the past year. There is a positive correlation between the 12-month rate of change in the S&P and the Consumer Sentiment readings, and this month really stands out as an outlier.
Assuming the S&P doesn't completely fall apart in the coming weeks, this month's reading would be the 2nd-lowest all-time for any month when stocks closed at a 12-month closing high. Only December 1991 would have a lower reading.
A low Consumer Sentiment reading during a month when the S&P closed at a new high tended to be a good sign.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
