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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: Harpo who wrote (2022)11/30/1998 7:26:00 AM
From: Q.   of 2506
 
all: investor sentiment indicators are now back to the extreme
bullish levels of last March and April, when the last small-cap peak
took place. This is a favorable indication for shorting small-cap stocks.

I keep track of the 4 surveys published in Barrons. I average the %
bull figures, and today's average of 58.2% was exceeded only by a
couple of % points back in March and in April.

Here's a useful chart of the Russel 2000:
tscn.com

Here's another commentary from another survey, done by Lowrisk.com:

Bullish sentiment jumped 11% from already highs levels to end at 63%.
Bearish sentiment dropped 7% to 21%, and neutral sentiment dropped 4% to
17%. The bullish reading of 63% is now clearly in the danger zone for the
bulls. In the 18 months we have been publishing, readings of greater than
60% have consistently been warning signs of impending consolidations.
Previous readings of 63% or higher were on 4/5/98, 3/22/98, 10/5/97,
8/8/97. All four occasion saw significant selling within a couple of days.
In addition, the 5 week moving average of bullish sentiment is now at 51%.
We consider anything above 50% on this measure as thin ice for the bulls.

Please stop by to take part in this weeks survey at:
lowrisk.com
More sentiment data is at: lowrisk.com
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