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Investor Sentiment: Onus On The Bulls
Three weeks ago investor sentiment was very bearish and this was a bull
signal. As expected, stocks advanced rather handsomely. Of course,
this was on anemic volume, and of course, all news was good news and of course,
stocks only proceeded in one direction ---up! No doubt such price action
is the hallmark of short covering. While this is how most rallies get
started anyway, at some point stocks will need to gain on their own
merit. We are at that point. With the sentiment indicators
turning neutral, stocks will no longer have short covering to propel them
higher. This puts the onus on the bulls - it is time to put up.
{to view larger images, click on graphs}
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...I thought the AAII figures had flip flopped from bearish to very bullish and mutual fund cash levels were near record lows....maybe we need Timmy to get on TV and explain to the public how he is going to fix the economy....maybe that would do it??? Could we arrange to have Nancy sitting next to him???
not time for a bull market yet. whatever happened to the 5 or 6 year prediction? background events haven't aligned yet. it will be a while.
http://covert2.wordpress.com
mmm i disagree.
i think when you have zirp, the market's tendency is to skyrocket, and only a constant stream of bad news will keep it down.
jmho.
i also think things have gone far enough that a constant stream of bad news is a likely scenario.
Don't overlook the twice and thrice weekly doses of fresh cash from the POMO operations, aka QE1.5.
Wonder how come certain data concerning the Smart Money data is no longer available from NYSE (see bottom of page 1)? What data was that? I'm not that versed in this area so some looking into the details would be in order.