Optimism Index Heatmap

It's been a while since I posted the sentiment heat map.  This is the reddest I have seen it.  The items in red are at extreme optimism levels while the handful of green assets are at extreme pessimism levels.  No surprise here to see that most of the assets in green are ag related.  The meats in particular should have an exceptionally strong rally once this corona virus stops shutting down processing facilities.

In case this is your first time seeing this, many of the names are ETF's.  SPY is the S&P 500 ETF.  Some are somewhat repeated.  For instance, you could have gold the commodity and you can have GLD the ETF both listed.  Nat Gas and UNG, the ETF are listed....etc.  I can send you the individual sentiment charts for any of these commodities if you are curious.

An asset can remain at an extreme level for a long time, so sentiment is not really useful as a timing tool.  It really just senses the temperature of the market.  The sentiment values are but a tool to use along with the cycles.  Some assets, such as soybeans, just stay oversold all the time.  That said this market is not normal. The market would normally have about the same number of assets showing extreme optimism as they do extreme pessimism.