Alessio Rastani – Independent market trader for LeadingTrader.com – joined Zak Mir in the Tip TV studio to talk about sentiment from institutional investors, and how they could hint at a bullish rally in the markets
Optimistic speculation
Equipped with charts showing the huge discrepancy between the optimism of ‘smart money’ investors and the pessimism of ‘dumb money’ investors, Alessio pointed out how this divergence in opinions has typically heralded a positive move. However he does believe this signal is a weak one, and another leg to the downside is still possible.
Has oil found a bottom?
The second chart that Rastani highlighted is the institutional investors’ sentiment towards buying Oil. Historically a breach of the Bollinger band representing 2 standard deviations is the signal for the bottom of the market, followed by a rally. This has not yet happened, so there may be some truth behind Goldman Sachs’ recent call for oil to resume its descent.