Monday, May 8, 2006


Occasionally I add a meaningful Sentiment Indicator that appears, after
tracking it for awhile. This week I am deleting an IBD important one
because of its unreliability and tardiness. Their Mutual Fund Cash has
suddenly been revised from 4-5%, down into the 3s, and backdated into '04.
There are several ways of measuring this and IBD's has never matched any
others I've seen, but was OK as long as it was consistent. AMG's website
only has Mutual Fund Cash FLOW, not levels.
Elsewhere, Friday's big week-ending runup gave a shot in the arm for
markets and sectors, but not to an overbought level, Sentimentally speaking.
Rich mid-East oilionaires are buying Real Estate, companies and global
stocks with their profits.Volatility is low and Sentiment is quite
neutral, if not Bullish. I.I. (Investor's Intelligence) Bears are high at
28.6, and AAII is at 33.6%. Nova Bulls to Ursa Bears are at recent lows
of 15, and all else is copacetic.
So when is this Presidential cycle low going to kick in?

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