Sentiment update

As you can see most reading heave risen quite a bit actually high enough for a correction as we have many more not displayed her who are at really overbought levels – still not at extremes as the chart at the bottom does show which is still in the ‘Panic ‘ area.

The technical picture confirms this overall reading as do Astro cycles hence coming week we can expect the correction to start as the non financial sector will not look as good ( financial look good due to cooking earnings up and the underlying fundamentals are deteriorating still).

The other thing which is the stress test results will not look that pretty as the early signs are not promising and the officials can not paint a too rosy picture as reality will hunt them down very soon ( 2 quarters from here).

Nevertheless we will face a 2 weeks correction before wave C up kicks in to finish the overall sucker rally. Do not believe for a moment we are done to the downside as all big bear markets turned at 8ish PE’s to mark bottoms we need to drop to 400 SPX to mark that for now.

INVESTOR SENTIMENT READINGS

High bullish readings in the Consensus stock index or in the Market Vane stock index usually are signs of Market tops; low ones, market bottoms.
Last Week 2 Weeks Ago 3 Weeks Ago
Consensus Index
Consensus Bullish Sentiment 44% 42% 30%
Source: Consensus Inc., P.O. Box 520526,Independence, Mo.
Historical data available at (800) 383-1441. editor@consensus-inc.com
AAII Index
Bullish 44.1% 35.7% 42.7%
Bearish 35.9 44.3 37.1
Neutral 20.0 20.0 20.3
Source: American Association of Individual Investors,
625 N. Michigan Ave., Chicago, Ill. 60611 (312) 280-0170.
Market Vane
Bullish Consensus 40% 38% 37%
Source: Market Vane, P.O. Box 90490,
Pasadena, CA 91109 (626) 395-7436.
Citigroup Panic/Euphoria Model
Market Sentiment
Advertisements

~ by behindthematrix on April 20, 2009.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: