Once again BlackBerry (BBRY) proves the point that it’s a lot harder to make money against the trend than it is with it. After the counter trend bounce signal the stock traded higher, but crashed before traders on Twitter had given up. Another point to make is that in a live trade taking profit at the 50 and 200 day moving averages would have protected the profits even if you still held 1/3 of the position when it crashed. That’s why we always remind you to make your own decisions on each trade and don’t use our signals blindly. They are meant to be confirmation of what you already know or a starting point for your research. Twitter sentiment for Emerging Markets (EEM) has now closed its sell signal. All I can say is ouch…not every signal ends up being correct.
Berkshire Hathaway (BRKB) made its debut on the most bearish list this week. It has been lagging the market since this rally began so it’s something to watch if it continues to under perform during the current dip. Below are charts with the bearish intensity scores of the most bearish stocks on Twitter for the week and month ending 8/27/13.
Bad news out of Potash (POT) increased both the volume and bearish intensity of tweets for the agriculture stocks this week. Mosaic (MOS) fell victim as well. This came as a big surprise to many, but taking a look at an agriculture ETF (MOO) you can see that agriculture has been in trending lower from early in the year. Also of note is that Caterpillar (CAT) leads the list this week, and emerging markets (EEM) and Dow Chemical (DOW) made the cut. This is starting to paint a picture of even more weakness in the most basic sectors of the world economy. Take a look at some charts of the other stocks on the most bearish list and you’ll see it littered with bad surprises. This may be early warning that the slow world economy is finally having an impact on the United States. Below are charts with the bearish intensity scores for the most bearish stocks on Twitter for the week and month ending 7/30/13.
The SPDR Gold Trust ETF (GLD) has been on the weekly most bearish list for several months. It finally fell off, however Silver (SLV) and Emerging Markets (EEM) (EWZ) are still on the list. Leaving the most bearish list is the first step towards a possible turn back to an uptrend. Below are charts with the bearish intensity scores for the most bearish stocks on Twitter over the week and month ending 7/9/13.
Usually the most bearish stocks on Twitter have well defined down trends like Apollo Group (APOL), JC Penny (JCP), and Gold (GLD). But once in a while a stock in an uptrend shows up. Keep an eye on Goldman Sachs (GS) over the next few weeks because the chatter on Twitter is fairly negative even though the chart still isn’t badly damaged. The worst that can be said it that GS is painting a bearish flag at the moment. Below are charts of the bearish intensity scores for the most bearish stocks on Twitter for the week and month ending 7/2/13.
Apple (AAPL) made it back onto the most bearish list of stocks on Twitter. But the overall tone shows weakness in the world economy with symbols like EWZ, EEM, GLD, and XLY. Below are charts of the most bearish stocks on Twitter for the week and month ending 6/25/13.
The current consolidation in the market is causing more stocks to warn or show negative chart and sentiment patterns. In addition, more are showing up with sentiment readings that don’t give a clear indication of the stock’s current status. However, we still have 62% of the 50 most active stocks with positive chart and sentiment readings. The stocks that show negative patterns are roughly the same number as what we saw during the first of May during the first part of the current consolidation. This is somewhat encouraging for the bulls since the market is quite a bit lower, but chart patterns aren’t breaking down and sentiment isn’t showing a build in extreme bearishness either. Below is a chart of the status of the 50 most active stocks. In addition, there are charts showing the intensity scores for the most active stocks for the week and month ending 6/25/13.
Below are the intensity scores for the most active stocks on the Twitter stream for the week and month ending 6/18/13. Apple (AAPL) continues to dominate, but Google (GOOG) and Tesla Motors (TSLA) are starting to see a lot of tweets.
Below are charts with the bearish intensity for the most bearish stocks on Twitter for the week and month ended 6/18/13. A wide range of sectors, but emerging markets and gold are near the top ideas people don’t like.
Below are charts with the bearish intensity scores for the most bearish stocks on Twitter for the week and month ending 6/11/13.