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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: 4rthofjuly007 who wrote (28870)	1/19/2002 6:02:53 PM
From: UnBelievable	Respond to of 209892

Contrarian Sentiment Is Most Useful When It Is At The Extreme At Market Turning Points It is not unusual that many investors recognize an established trend. The fact that a fair number of investors recognize that the trend is currently bearish does not preclude the trend from continuing or even from becoming more bearish, just as the fact that many investors recognized the previous trend was bullish did not mark the end of the bull market. The fact is the market is more bearish now than it ever was during the the time frame which we use to evaluate most sentiment indicators and during which the Rydex funds have existed. Its only when they become extreme in absolute terms, not relative to those which we saw in the bull market, that we may be reaching a turn. We are not even close. The fact is the sentiment has been bearish in Japan for quite a while now and it isn't clear that bottom is in.