Good time to take a look at sentiment again. Tom Drakes 2cs senticator above on which I've drawn a couple of heavy black lines more or less bisecting the recent sentiment line and the price line. Notice how, as price has maintained a steady upslope since March, sentiment exuberance has actually backed off in the same time period. IOW, as price has remained more or less linearly up, sentiment has gone into a topping pattern and almost looks to be becoming more and more bearish as price marches on upward. We've got a long way to go before this market tops out.
Saturday, November 14, 2009
Pre-Turkey 2CS Sentiment
Good time to take a look at sentiment again. Tom Drakes 2cs senticator above on which I've drawn a couple of heavy black lines more or less bisecting the recent sentiment line and the price line. Notice how, as price has maintained a steady upslope since March, sentiment exuberance has actually backed off in the same time period. IOW, as price has remained more or less linearly up, sentiment has gone into a topping pattern and almost looks to be becoming more and more bearish as price marches on upward. We've got a long way to go before this market tops out.
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2 comments:
Thanks for presenting the always interesting & important 2CS.
In other words the dramatic market crash of 2007-2009 traumatized the public so much that it will take a long time before they will ever become exuberant again. The next crash of this magnitude is probably a long time away. However, in my book there should be a more serious correction later next year in the 10-20% magnitude. Until then we should see aome good advances.
Joe
Yep, agreed on all points. Most hate the market right now, dont trust it....afraid of getting burned once again. Just the right backdrop for continuing this advance into next year.....when, after who knows how many more points up, some will start returning to play. Should be interesting.
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