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My mentor, Sir John Templeton came up with the 4 stages of a bull market, reflected in the illustration below. My strategy - TB&M (Tops, Bottoms & No Middles) focuses on key turning points at key highs and lows.
With this in mind are investors reaching the Euphoric Stage as the S&P 500 is nearing old highs and the Dow is hitting new all-time highs? The chart below was sent to Premium & Sector Sentiment extreme members last week.
This chart created by Sentiment Trader.com reflects that overall sentiment indicators are not at levels where prior key highs have taken place over the past couple of years. I have shared this with members for several weeks, suggesting that odds favor higher prices until sentiment reaches higher euphoric levels!
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