Sentiment-wise there are some hopeful signs: Odd-lot shorting is at record highs, 4 times the number year over year; and Nasdaq short interest is also at record levels, with Public/Specialist close behind. Barron's Panic Index is at a low -0.73.One of the most reliable of Indicators, the AAII Survey, has once again inverted with 46% Bearish and 32% Bullish.
The McClellan Oscillator is pushing up thru the zero line and the Summation has gone lower to -585, a support area. Finally, the CBOE put/call ratio, although off its last week highs, is still Bullish at 60, with the ISEE at low 125.
Possible negatives for the market are the mutual fund cash level, a low of 4.4% per IBD, and, of course, the usual Fundamental suspects of higher rates and oil prices, tired Bull market and economy, blah, blah, blah.
Personal note: I have been asked to again teach an online Technical Market Analysis course at Golden Gate University this Spring semester, and will give a talk on Sentiment at November's Investor's Business Daily monthly meeting, which will be in the 16th - which is the 3rd Wednesday - due to Thanksgiving occurring in the 4th week. It is Schwab headquarters on Montgomery St. at 7 p.m. for those interested.
With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: brentleonard.com for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Amazon.com: Zero (IN)Tolerance
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