Mark Hulbert: Market timers are less bullish now than at Dow 20k — and that’s a good thing

CHAPEL HILL, N.C. — That lethargic applause you’re hearing from stock-market timers is their reaction to the Dow Jones Industrial Average explosively eclipsing the 21,000 barrier.

That they are not giving the market DJIA, +1.46% a standing ovation is bullish from a contrarian point of view.

Consider the average recommended stock-market exposure among the market timers I monitor who focus on forecasting the S&P 500’s SPX, +1.37% short-term gyrations (as measured by the Hulbert Stock Newsletter Sentiment Index, or HSNSI). This average stood at 52.2% at midday Wednesday.

That’s below the 65.5% level this index rose to in December, at a time when the Dow Jones Industrial Average stood below 20,000.

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