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Investor Sentiment: We Need Buyers

thetechnicaltake's picture




 

Without buyers stepping in, extremes in bearish sentiment will be just that - extremes in bearish sentiment. Prices not only ended the week on a big down note, but they also failed to close above resistance levels despite probing above those levels all week. This was just pure selling. The smart money and company insiders continue to show little buying interest as well. Even the Rydex market timers appear to be sitting on their hands. The lack of volume on up days and the increased volume on down days is a lack of sponsorship - plain and simple. Buying has yet to surface, and until the markets clear the near by resistance levels on a weekly closing basis (i.e., 107.58 on the SPY and 45.01 on the QQQQ), this market remains suspect.

{To view larger images, click on graph}

Investor Sentiment 7.16.10

 

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Sun, 07/18/2010 - 19:39 | 476340 Fox Moulder
Fox Moulder's picture

*cleans glasses*

 

Oh, I thought the title said "We Need Prayers".

Sun, 07/18/2010 - 17:09 | 476218 dcb
dcb's picture

hft, cheap leverage, and no transaction tax. that is all the makings you need for market extremes. lets add paying for liquidity by the markets. the current market structure is doing exactly what one would expect by design.

Sun, 07/18/2010 - 17:03 | 476213 DoctoRx
DoctoRx's picture

The so-called "dumb money" did a great job when it turned bearish near the market peak(s) in 2007-8.  Not so dumb, it appears.

The only thing that matters is price.  All this stuff listed above is of some interest as entertainment on a summer day.  IMO the most objective observers such as Smithers and Rosenberg calculate that stocks remain too expensive; though compared to the miserable investment choices (except gold etc) given all the unneeded printed money in the "system" is the vexing question.

Sun, 07/18/2010 - 16:40 | 476205 Akrunner907
Akrunner907's picture

Instead of buyers wanted, the article should be, "Investor sentiment:  We need suckers"

Sun, 07/18/2010 - 16:07 | 476193 DosZap
DosZap's picture

(O T)a tad,How about  Our Buyers, being holders of USG Bonds, and Treasuries.................with billions of  USD's invested, not cashing out,for more dollars back.

But instead use those USD's to buy PRIME RE, and Major American Properties,assets, with REAL value,(if not now) down the road.

What if China, and Japan etc, decided to Divest themsleves of their VERY dangerous holdings in this manner............screwing us double?.

If you were them, which would you choose?.How do you think the Mkt would react to that?

Sun, 07/18/2010 - 15:42 | 476182 Tic tock
Tic tock's picture

You mean.. as in plural..?

Sun, 07/18/2010 - 15:38 | 476181 ozziindaus
ozziindaus's picture

Does the dumb money ever learn? Does the smart money ever get too smug? In this market, it's the luck money that makes it.

Sun, 07/18/2010 - 15:04 | 476159 LoneStarHog
LoneStarHog's picture

"Values Less Than 50% Are Associated With Market Bottoms"

This is probably true in a BULL MARKET, but not in a BEAR MARKET, which is why Bear Markets just continue to SLAUGHTER virtually everyone, except the GENIUS TRADERS who post at Yahoo!, where there are no losers.

Sun, 07/18/2010 - 14:47 | 476139 RockyRacoon
RockyRacoon's picture

The really, really smart money is not a component of your graphs.

That would be the group I am in.  Sorry, but I am not participating.  It's like reading about the super rich, not there, but fun to observe.

Thanks for a great article!

Sun, 07/18/2010 - 18:57 | 476305 MarketTruth
MarketTruth's picture

Smart man! Yes, they need more DUMB MONEY to get back into the game to steal from. Smart investors have left the building (or they own HFT computers to steal the dumb money).

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