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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Rillinois who wrote (5049)5/20/1998 5:12:00 PM
From: Mr. BSL  Read Replies (1) of 42834
 
RI, Thanks for the sentiment numbers.
To anybody - My understanding of these numbers is that extremely
high Bull/Bear ratios tend to signal a market top and extremely low
ratios tend to signal a market bottom. My question - when the market
starts weakening does the Bull/Bear ratio also tend to weaken as it
is doing now? Is this a case where the public is right most of the time
(between the extremes) but wrong at the wrong time (at the
extremes)? I tend to follow the Point and Figure indicators to
determine market risk. When the percent of NYSE stocks that are on
bullish signals reverses down from above 70% it is considered high
risk. This indicator went bearish last Wednesday . The high risk is usually confirmed by the Point & Figure charts for the underlying 40
or so major market sectors weaken. According to ChartCraft, there
were 22 changes to the sector charts last week and all of the
changes were negative! And yet, the DJIA goes up 100 points today.
What I am trying to determine is whether or not the weakening
Bull/Bears sentiment at these levels tends to be a confirmation that
the market is weakening or does it tend to indicate that the diminishing number of bulls should lead to a strengthening of the
market. I know that there are no crystal balls but I am interested in
reading the indicators correctly.

Thanks in advance to anyone who has any thoughts on the
weakening Bull/Bear ratio at these levels.

Regards,

Duke
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