Hello Preston,
With permission from CHARTCRAFT/INVESTORS INTELLIGENCE, here's just a smidgon of their daily market data:
SENTIMENT INDEX 2/19/99 2/12/99
% of Advisors Bullish 55.7 61.2
% of Advisors Bearish 28.7 25.9
% of Advisors Correction 15.6 12.9
A few indicators as follows:
2/16/99 2/09/99
% NYSE > 10 WK MA: 29.91 33.26 Bear Confirmed
% OPTs > 10 WK MA: 36.10 36.30 Bear Confirmed
% NYSE > 30 WK MA: 38.83 40.61 Bear Confirmed
% OPTs > 30 WK MA: 46.10 46.90 Bull Correction
NYSE Bullish % 41.70 45.10 Bear Confirmed
OTC Bullish % 44.00 48.30 Bear Confirmed
OPT stks Bullish % 43.40 47.70 Bear Confirmed
NYSE High Low 23.20 36.80
OTC High Low 39.10 59.90
Paraphrasing a few of Mike Burke's comments: Breadth continues to be horrible in all the different ways we look at it. Indicators continue to be bearish, both long and short term (short term is now oversold). Bonds continue to be bearish and this suggests the current correction will be worse than the last two. In sentiment the bulls are finally decreasing from a 12 year high and the bears increasing. In conclusion, the indicators are negative and we are getting more defensive. As always, if our indicators change, we will change, but for now keep the defense on the field.
BTW, for anyone interested in one of my favorite indicators, the Dow Jones 20 Bond Average, I stuttered and sputtered about that little jewel at Message 7842134. For the sake of discussion, it has now dropped down to 105.4, and that sets it up for a low pole buy signal if it was to reverse back up to 106.4 (but I do'n thin so ri now Lucy).
Take care,
Eric
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