Mutual Fund Cash
Started by
Chilidawgz
, Sep 07 2007 12:19 PM
2 replies to this topic
#1
Chilidawgz
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A fool and his money... (the second mousie gets the cheese)
Posted 07 September 2007 - 12:19 PM
Anything can happen...what's happening now?
No one can forecast the future. No one.
All stocks (ETF's) are BAD...unless they go up - William O'Neil
When The Time Comes To Buy or Sell, You Won't Want To - Walter Deemer
#2
vitaminm
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Posted 07 September 2007 - 11:29 PM
This was sent to me by a friend who subscribes to sentimenTrader.com
Does this include bear (short) funds?
vitaminm
#3
kaiser soze
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Posted 08 September 2007 - 06:56 AM
I look at this chart practically every month. Never posted it because it is proprietary content and could get TT into trouble.
Its true that low mutual fund cash levels are never positive. After all, if Da Boyz or the hedge funds begin a bear campaign, the mutual funds are in no position to average down and defend the market.
But it is truly bearish only when the cash turns up from very low levels (ag circa 1973, 1980,1998 & 2000). That has not happened yet. Also it is interesting that before the cash level turns up, it makes a final spike down followed by an initial spike upwards, both of which again have not happened yet.
Of course, the data is always presented with a time lag so its quite possible that we are in the midst of the spike down and spike up, a very reasonable possibility considering the schizophrenic action. Several 90% downside days followed by a couple of 90% upside days. And just when one thought, ok -the markets are stabilizing, we get another 90% downside day on Friday.
Edited by kaiser soze, 08 September 2007 - 06:59 AM.
