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

To: Night Trader who wrote (83831)	5/12/2003 3:23:56 AM
From: Psycho-Social	Read Replies (1) \| Respond to of 99985

Wall St. Strategists Sentiment: For quite a number of years I kept an indicator using the average stock allocation recommended by the 10 largest brokerage firms. This methodology was, I believe, similar to that employed by the Merrill Lynch guy named Bernstein who popularized the approach. It worked OK as an intermediate to longer term indicator for quite a number of years, but like the Investor Intelligence survey, got stuck at higher levels and never got down to Buy Signal levels. I've studied probably 2 dozen or more contrarian indicators over the years, and the three indicator combination I mentioned is the best intermediate term measure of Market sentiment available. The idea, of course, is not to rely on any or all of the three individually, but to average their weekly readings.