Sentiment indicators

Here are 2 very interesting charts coming from a colleague strategist.

The first one shows that corporate insiders (corporate insiders are corporate members who has special knowledge and/or access to confidential information = smart money) are buying massively. This group of investors is usually right and one should look at their action with a momentum approach rather than a contrarian one!). This is a very encouraging sign as it translates the fact that those investors do believe that the recent correction is a good buying opportunity.

The second one comes from the sentiment index computed by Ned Davis Research.
While it did not generate a formal buy-signal yet, it indicates that investors are too pessimistic towards equity markets.