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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (35474)	5/6/2002 3:42:07 PM
From: Rock_nj	Respond to of 52237

They are certainly looking right today. Probably a self-fulfilling prophecy. There are no catalysts or investors (because of all the bearish sentiment) to send this market higher, so it drifts lower.

To: Square_Dealings who wrote (35474)	5/6/2002 3:56:03 PM
From: High Country Trader	Respond to of 52237

>>There are times when the majority is right<< So true but what is scary is we haven't even gotten close to where everyone is bearish. In 73/74 everyone finally threw in the towel and got bearish. The newsletter writers were net bearish week after week for nearly one straight year. Still, the market kept grinding lower.

To: Square_Dealings who wrote (35474)	5/6/2002 4:00:10 PM
From: Robert Graham	Read Replies (2) \| Respond to of 52237

IMO actually it is the misinterpretation of the contrarian view that frequently does not work. Divergences are a normal part of market behavior. This is also true with strong negative or positive sentiment. But one or both can exist and it does not need to mean anything. It is the timing of changes in the two as it relates to price that provides the more worthwhile indications that a top or bottom may be in the works. And changes in sentiment indicators can be made to occur by other factors. That is why making a contrarian assessment of the market is more art than science. JMO FWIW. Bob Graham