Bottom line

Jason Goepfert
2020-07-01
  • Weight of the evidence has been suggesting flat/lower stock prices short- to medium-term, though that turned more neutral as stocks pulled back recently; still suggesting higher prices long-term
  • Indicators showed high and declining optimism, as Dumb Money Confidence was recently near 80% with isolated signs of reckless speculation, during what appears to be an unhealthy market environment
  • Active Studies show a heavy positive skew over the medium- to long-term; breadth thrusts and recoveries have an almost unblemished record at preceding higher prices over a 6-12 month time frame
  • Signs of extremely skewed preference for tech stocks nearing exhaustion, especially relative to industrials and financials (here and here)
  • Indicators and studies for other markets are mixed with no strong conclusion

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