Products
SentimenTrader Trading Tools
‍
Backtest Engine
My Trading Toolkit
Correlation Analysis
Seasonality
Indicators & Data API
‍
Proprietary Indicators & Charts
Market Data API
Strategies & Scanner
‍
50+ Trading Strategies
Smart Stock Scanner
Research Reports
‍
Research Solutions
Reports Library
Free Resources
Simple Backtest Calculator
Simple Seasonality Calculator
The Kelly Criterion Calculator
Sentiment Geo Map
Public Research Reports
Pricing
Company
About
In the News
Testimonials
Client Success Stories
Contact
Log inLoginSign up
< BACK TO ALL REPORTS

Internet sentiment

Troy Bombardia
2020-04-29
Sentiment towards internet stocks is at its highest level in a decade:

As I've noted over the past few days, internet stocks are extremely popular these days. With a similar formula to the one we use to calculate Optix for other ETFs, we calculated an Optix for the Dow Jones Internet Composite Index. As you can see in the following chart, a 20 day average for Optix is at its highest level in a decade. It doesn't help that this index has essentially made a flat top since January 2018:

Historically, such optimistic sentiment towards internet stocks has led to mixed/bearish historical returns. This was clearly bearish during the 2000-2002 dot-com bust since it occurred at the top of counter-trend rallies. It wasn't necessarily bearish during a bull market.

Overall, I think the rally in tech stocks is overdone. HOWEVER, I would caution readers to not confuse "tech stocks are overstretched, hence they should fall" vs. "tech is overrated". Valuations might be stretched and stock prices might come down. But the fundamental trend that supports tech is not going to end, even if tech stocks crash. So from a trading perspective, long tech is not a good idea. But if you are an entrepreneur, "long tech" by moving your business towards being more reliant on tech is a great idea. The 3 biggest trends right now - AI, 3D-printing, and nanotechnology will continue to revolutionize countless industries. Companies that are slow to adapt to new innovations will die off, whereas companies that infuse their business with these technologies will do well.

Sorry, you don't have access to this report

Upgrade your subscription plan to get access
Go to Dasboard
PRODUCTS
SentimenTrader
Trading Tools
Indicators & Data API
‍
Strategies & Scanner
‍
Research Reports
FREE
RESOUrCES
Simple Backtest
Calculator
Simple Seasonality
Calculator
The Kelly Criterion
Calculator
Sentiment Geo Map
‍
Public Research Reports
‍
Pricing
Bundle pricing
‍
Announcements
‍
FAQ
COMPANY
‍
About
‍
In the News
‍
Testimonials
‍
Client Success Stories
CONTACT
‍
General Inquiries
‍
Media Inquiries
‍
Financial Professionals Inquiries
‍
© 2025 Sundial Capital Research Inc. All rights reserved.
Setsail Marketing
TermsPrivacyAffiliate Program
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.