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Shared the sentiment chart (lower left) with Premium Members last week, reflecting a good deal of stock market bears are at hand, at the same time the Dollar continues to deal with strong overhead resistance.
This set up increases the odds of a short-term rally as it has in the past in the lower left chart.
One of my favorite sentiment tools is the Rydex cash reserves indicator and you are for sure spot on that investors HAVE NOT piled into cash like they did last October.
I shared with premium members last Friday morning that sentiment had grown rather bearish and in this post my last sentence stated…”that odds increase that a short-term rally” should take place.
The sentiment at this time, is not near the sentiment situation when the Power of the Pattern reflected fear was off the scales back in October of 2011.
Thanks for the great comments B!
Not telling the whole story by just including investor sentiment toward stocks right now…
The Rydex bull/bear fund data has investors knee deep in equities still…
Moreover, mutual fund cash balance ratios at an all-time low. Only times that saw levels remotely close to this level were 73, 00 and 07 – each produced a generational bear market of 50%+…
Hilbet Sine Wave on the Euro, monthly, weekly and daily, are all at a Cycle Low, and the Dollar a mirror image of such
Thought to self: counter intuitive… Eurozone 3 to 4 country’s bankrupt/depressions ….Greece leaves, Portugal leaves whomever, so what, good riddens, Euro will be repriced up, while Equities reprice, chop around disorderly, consolidating looking for a bottom, pushed and pulled by the currencies Intermarket relationship, & Economic slow down…QE3?