How many here think this bear can end with only a few billion of net public mutual fund redemptions? Something for former bears now turning bullish to think about.>>>>>
George, the other sentiment indicator i am watching also that doesn't seem to wanna give is the rydex otc long/short ratio, at the top the ratio was about 98% bullish, it is now 93% bullish only because the decrease in bull fund, none of the rydex speculators still wanna short nasdaq after a 60% drop, this seems like a hallucination, unbelievable.
while put buying has increased to levels that were bottoming areas during the bull market, rydex is lagging a bit.
during the bull market we had the wall of worry, during the bear market you have the opposite the wall (or slope) of hope, with all the indexes below the 200 dma after a super bull run, it makes sense to give the trend of the last year the benefit of the doubt, nobody knows where the economy is going in the next several quarters and we are coming off a period of excessive optimism.
stockcharts.com[l,a]daclyymy[de][pb50!b200!a9700][vc60][iUb14!La12,26,9]
for months i've been posting these horizontal line charts showing rallies into resistance, did we just do another one? |
