Sad faces (9/30)….
Notice in the CNBC interview how gloomy the panel was with the Dow futures trading below 11,000 at the time. Within 4 days the Rydex ratio hit a cash ratio seldom seen in the past 15 years. (see Rydex ratio here) All of this was taking place at the bottom of a multi-month trading range. Extreme levels of fear were at hand, represented by the attitudes in the interview, the Rydex ratio reflecting a ton of investors had moved to cash, VIX was at the top of its trading range. When do lows usually take place? When everyone is Happy or Sad?
Happy faces (11/7)….
Now turn the table to yesterday, when the same firm was brought back on CNBC to discuss its Recession thoughts. (see video here)
Notice how the panel on CNBC almost threw him under the bus as the Dow is up over 1,000 points from the first interview. Confident attitudes from the panel were easy to pick up on, as the Wilshire 5000 and the NYSE are testing the “underside of the neckline” of a bearish head and shoulders topping pattern (see post here)
How interesting…..Fearful attitudes were easy to pick up on around October the 1st, at the bottom of the trading range and now attitudes on CNBC are rather confident at key resistance.
If you read the word “Racecar” from right to left what does it spell? The same word!!! Looking at the news/attitudes of people on TV and investing in the opposite direction, can often be beneficial to your portfolio!