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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Boplicity who wrote (33008)10/10/2000 8:32:05 PM
From: solihull  Read Replies (2) of 54805
 
Greg,

You will surely agree with this:

"The current market sentiment is a positive development for the intermediate to longer term, as this is a level of pessimism we have been waiting for since the market first started stagnating in March and April. This indicator can often be early, however, so a good deal of short term weakness (after all, it is October) may be borne out before the long-term bull settles back into place.

"So what does this mean for those trying to follow this indicator into a market bottom? Patience will be the key. Market technicals could mitigate the bullish implications of this growing pessimism. I say this because of the natural dynamics of sentiment analysis. That is, it's "natural" for investors to become pessimistic when the market has truly crossed into bearish territory.

"Valuable sentiment "reads" are usually contratrend in that it is not "normal" for investors to be overly pessimistic when the market is in bull mode. This makes the technical environment the market is currently facing even more important."

Best,

john
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