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.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5oWoaKJE6DCyOgCVWwom6QV6TJzfcrCNw0GCfFMUu_EOdDnPcCC0w9uRt-_s50YI__tv3CthfvI22V_8ecexgKPupk4DWcYZ5MBmc0-XUStyAY6jxB63KGpW1JZerLotXP36W4w/s320/ned+davis.bmp)
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