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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 335.11-2.0%Jan 20 4:00 PM EST

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To: Boca_PETE who wrote (5577)9/23/2010 4:35:39 AM
From: DD™3 Recommendations  Read Replies (2) of 10065
 
Excerpt...

"It is true that the short-term market timers tracked by the Hulbert Financial Digest are somewhat more optimistic now than they were at the depths of the crisis. But they are not excessively bullish, either.

Consider these timers’ average recommended equity exposure, as measured by the Hulbert Stock Newsletter Sentiment Index (or HSNSI). It currently stands at 21.4%, which means that these timers on average are still allocated some 79% of their equity portfolios to cash.

It is interesting to note that the HSNSI’s current level is quite close to where it stood on May 7, the day after the famous “Flash Crash.” The Dow Jones Industrial Average on that day stood at 10,380, or about 350 points below where it stands today.

So even though the stock market is higher now than then, the average market timer is just as pessimistic today as he was the day after the markets apparently had become completely unraveled.

In other words, there doesn’t today appear to be excessive optimism.

Contrarian analysis therefore concludes that the market’s recent rally still has room to run."

marketwatch.com

DD™
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