3 replies to this topic

[eminimee]

What's is goin' to be boy?

http://stockcharts.com/c-sc/sc?s=$NDX:$SPX&p=W&yr=10&mn=8&dy=0&i=p16718866931&a=114984972&r=1106.png

[eminimee]

fwiw...maybe a number on spx If this is indeed we are getting the last leg of an ED....C=A of the 5th is at 1571.71 ...on oex the number would be 732.57


...da boy who cried sell is doing it again..

http://stockcharts.com/c-sc/sc?s=$SPX&p=5&yr=0&mn=0&dy=15&i=p59338381696&a=93322579&r=196.png

http://stockcharts.com/c-sc/sc?s=$OEX&p=5&yr=0&mn=0&dy=15&i=p99051463098&a=106624082&r=6507.png

[Doug]

Many talk about too many bears (shorts) in the market as a reason why we keep rallying. That was probably true in the beginning of the bounce off the August low, but they're all pretty much gone now. I tend not to follow sentiment indicators because frankly I've had trouble using them as a timing tool. Some are good for at least a heads up for the general mood of the market and from a contrarian standpoint (which is easy to say you are but much harder to actually be) these indicators can be helpful. The put/call ratio and short interest are two examples of sentiment.



The top line, green, is the bullish percentage of investors and as you can see it is now higher than it was at the earlier year highs. The bearish percentage is nearing a yearly low. When the sentiment readings get this far out of whack then you know we've got too many people leaning over one side of the boat. This says the majority of traders are bullish and very likely already positioned for a bullish move in the market. That raises the question about where the buying power is going to come from. The Fed (again)? Maybe, but not all by their lonesome.

Regards,

[eminimee]

Today, 08:59 AM Post #26 Member Group: TT Member+ Posts: 9647 Joined: 20-September 03 Member No.: 99 Hit me with a bigger stick! Short ES 83.25 with a stop at 88.50. Risking the es profit from yesterday. Doug..buying power at this stage could be capitulating shorts....of which I'm not one.........YET!

Edited by Teaparty, 11 October 2007 - 09:21 AM.