Monday, January 3, 2005


Once again the Sentiment Indicators warned of an overbought condition in the markets - December's 3rd full week ended with several Indicators at complacent extremes; a few ameliorated during the final week (such as the 2 put/call ratios, the VIX, and a few less advances than declines), but some got even extended moreso: NYSE new highs vs. new lows; and the Nasdaq Volume vs. NYSE Volume, near a 12 month speculative high. The Public is shorting more than the Specialist at 1.91 to 1. After Monday's profit-taking only the fullness of time will reveal the extent of this correction.

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