2 replies to this topic

[Swiss Trader]

Sentimentrader - Chart in focus

[spielchekr]

'57, '65, and '70 look like capitulations after extended price deteriorations. So in that respect '07 has more in common with the remaining one, '87. Yet '87 was already seeing some deterioration in the 20ma & 50ma. Here in '07, the 20ma didn't even cross below the 50ma upon the incident, and this happened from a point of no price deterioration whatsoever. So something is different this time. If one is a bull, I suppose one could dismiss it as being that the smart money has gotten smarter and the dumb money has gotten dumber.

[scott in Wisconsin]

I agree completely. His examples are terrible. Nothing like what just happened. 3 were capitulations at the end of long delines. Not sure why that didn't occur to him. The other was a 25% collapse -- not exactly what we saw 2 weeks ago, was it? We should go lower for 3-8 weeks, Me Thinks. Scott