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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?


To: Andeveron who wrote (2114)10/11/1998 7:46:00 PM
From: bobby beara  Read Replies (2) | Respond to of 3339
 
Ande, extreme levels of sentiment are contrary indicators - sentiment is based on what has happened in the past - not on future events.

The crowd is right in it's bearish sentiment, we are in a bear market, however the level of sentiment is what makes turning points.

Usually at market turning points where the crowd is extreme bullish or bearish the crowd is absolutely wrong - because the crowd is reacting the the present and the past.

While tricky as timing on a short term basis, longer term you can bet your booty that we are in a bear market - considering the extreme optimism over that last couple of years, it will take much time to work off this excess.

When sentiment starts turning more neutral to bullish again, thats when the market will turn around and go back down.

Here are some thoughts to consider:

decisionpoint.com

bb