Will The S&P 500 Make All-Time New Highs In 2019???

Will The S&P 500 Make All-Time New Highs In 2019???
January 23 15:52 2019

Contrarian investing is an investment style in which investors go against prevailing market trends by selling when the crowd is are buying and vice versa. A contrarian investor believes that certain crowd behavior among investors can lead to exploitable mis-pricings in the markets.

The bull/bear ratio indicates overall investor sentiment in the market by comparing the number of bullish and bearish investors. The ratio is a contrarian indicator in that a bull/bear ratio > 1 indicates conditions are too bullish and you should take a bearish stance and a bull/bear ratio less < 1 indicates conditions are too bearish and you should take a bullish stance.

Edward Yardeni, who spent decades on Wall Street running investment strategy for firms such as Prudential and Deutsche Bank, predicts stocks will break out to all-time highs this year. He’s partly building his bull case based on a chart pointing to negative market sentiment. 

It’s got an awfully good track record as a contrary indicator.”

Each time the index last year spiked to either record or near record highs, Yardeni found the S&P 500 Index entered correction territory. It appears an opposite trend is unfolding right now.

“I’m still sticking with 3100 and feel better about it,” said Yardeni, who noted valuation multiples, low interest rates and inflation is setting Wall Street up for a very good year.

Source

In order for Ed to be right, price has to get pass the daily supply zones in white and the mess in yellow first, so I will take the other side and bet $1 that Ed that S&P 500 won’t reach new all-time highs.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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rollandthomas
rollandthomas

I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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