Ken, at the late feb bottom, the rydex leveraged funds were 2-1 in favorite of the bears, now they are about 1.75 - 1, and the dow is back at those levels,
while we have no real extremes in sentiment and breadth puking, like we had near the end of feb., we might be getting a bottom here for a right shoulder in the dow, not enough evidence now, other than some bids coming in here, the trend is still down.
there is really no consensus in sentiment if you look at the 21 dma of cboe p/c, which is tightening in a narrow range.
there are the bears who think the economy is going to fall off a cliff, there are the bulls who think the eco rebound is for real.
stockcharts.com[w,a]daclyyay[dd][pb21!d15,2!a.57][vc60][iUb14]
the gold stocks look kind-a toppy, but who wud think it, now that they been running exactly contrary to the market, if they rolled over with everything else, like the $rut is, could happen.
looking at the narrowing range of the p/c ratio, i think a straddle is probably the best bet, |
