Contrary Indicators
Thepercentage of stocks above the 20 day moving average is at a level associated with rallies.
This week's AAII survey shows a big increase in bears, to 50%. That is the highest level since late May 2010. The bull/bear spread is -23%, which is high. The best bearish edge is whenever the bull/bear spread is positive.
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6 comments:
Agreed-- it feels like too much, too soon. I dumped 2/3rds of my puts this morning, and only my incredible bearishness keeps me from dumping the rest.
I'm making a list of things to buy. Opportunities in energy preferreds.
Good God. Clearly i was far too early.
What are you buying?
Nothing so far - I don't see anything that's gotten dirt cheap yet. I meant I was far too early selling my puts.
I'm surprised that the selloff has gone this far. I am now bullish on the energy complex and bearish on Treasuries.
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