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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (54905)	6/21/2000 9:47:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

LG, i'll do that....lately i have only mentioned the sentiment data when i saw unusual extremes develop...we have btw. yet to see a true sentiment bottom. there hasn't been one since the '98 lows. progressively the levels at which put/call ratios and Rydex ratios peak out (peaks occurring at bottoms in stock prices) have become lower, and the lows in the ratios have become more extreme. it can generally be said that the public has never been as unequivocally bullish, regardless of the markets gyrations, as this year. this is also reflected in the record high fund inflows during Q1. i find this very alarming for the longer term picture, especially as the market net-net isn't a trending market anymore. during a strong upward move one has to allow for an increase in bullish sentiment, but consolidations or trading ranges should ideally be characterized by growing skepticism - the Jan-March '99 consolidation being a good example - to serve as a launching pad for the next leg higher. this skepticism has been noticeably absent this year, even though the volatility in the Nasdaq was rather daunting. regards, hb