Below are the bearish intensity scores for the most bearish stocks on Twitter over the past week and month.
Below are the intensity scores for the 25 most active stocks on Twitter for the past week and month. Here is the status of the 50 most active stocks on Twitter. 70% have Twitter sentiment reading that confirm bullish chart patterns. Very few bearish stocks over the past week.
We haven’t done an update on gold and gold stocks since the end of February. The reason for this is that their charts have been broken. As technicians we look at price, volume, trend, strength, sentiment etc. to help us determine the likely path of a security. But, when price breaks down hard it skews the chart pattern so badly that the most important component for technical analysis (price) becomes of little value (other than the obvious message that the stock is broken). As a result, all we can do is wait for enough time to pass for the stock to reassert a readable pattern. Finally we’re starting to see a trickle of information from precious metals charts. In early February when GLD was trading above 160 and bouncing against the underside of its short term down trend line we gave up almost all bullish hope for the metal. By the 13th of February we stated that if GLD traded back down to 150 that “GDX will almost certainly break
Below are charts showing the bearish intensity for the most bearish stocks on Twitter over the past week and month.
We’ve often stated that the best use of our Twitter sentiment indicator is to confirm the trend and warn of a pause (or consolidation) in the trend. It is not like other sentiment indicators who’s major use is to act as a contrary indicator. However, we’re starting to see a pattern in the sentiment of some of the most loved stocks that is somewhat contrary in nature. The pattern occurs in stocks that have too much love. These are stocks that every trader, investor, and fund has to own. These stocks have so much love and such a cult following that positive emotions rule the sentiment. We’ll start with a chart of Baidu (BIDU). Take a look at smoothed sentiment from early June 2012 until early November. Notice how it had a hard time of ever getting below zero even though the stock was clearly in a down trend and had been for over a year. Traders loved this stock. They saw every dip as a buying opportunity. Even the