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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (40789)9/3/2005 2:41:29 PM
From: ild  Read Replies (4) | Respond to of 110194
 
From Swenlin:
09/02 Market Is Becoming Oversold
decisionpoint.com

Comments from Heinz:
the strongest argument here are the Rydex funds - the bear funds have seen big inflows for instance, presumably on account of the hurricane.
since Swenlin's is a short term forecast (a rally for a week or two), i declare myself agnostic...is it possible, sure it is. otoh, mutual fund cash levels remain extremely low and the seasonally weak period begins (the no-inflows period, namely), so it's just as possible that there's more ST downside.
by the way, the wedge is imo NOT bearish....i regard such wedges normally as bullish, unless they're attached to a pole.


Diverging indicators:

Investors Intelligence
Still too many bulls
schaeffersresearch.com

Rydex Nova/Ursa Ratio
Lots of bears
schaeffersresearch.com

Lots of new calls being opened
iseoptions.com