THE RISE AND FALL:

Maybe there is a reason Autumn is called "FALL" - it seems everything is: stock and housing prices, confidence, temperatures, etc. Is it a coincidence that the highest that the DJIA ever reached was Oct.9, 2007, and the lowest since then was Oct.10, 2008! If the world seems less wealthy these days, it's because the global markets have lost nearly $10 T just in October, with the U.S. $6.5T of it; and the real estate market added a $5T hit recently.
One bright note wast the tremendous success last weekend of the 1st Annual Wyckoff/TSAA Conference, with nearly 200 attendees and speakers from around the world. For the wrapup, go to the TSAASF.org website and see the speakers' notes.
In a more rational world where fund managers aren't racing for the doors ( @ 1/3 hedge funds are expected to call it quits by choice or necessity), Sentiment still seems a bit oversold, even after the huge rally last week. Extremes include: a very negative McClellan Summation Index, although the Oscillator is over bought at +72, up from a minus 38 last week; newsletter survey Investors Intelligence, rarely inverted to the Bear plurality, is more than double the Bulls; and although the Public to Specialist shorting is still high, the Insider selling isa t a record low 3.6:1!
Here are the numbers:

MktSentiment. 10/31/2008 Prev. Week.....5Yr.HI......LOW

DJIA ………. 9325…………8378………..14093............7286
Nasdaq………. 1720…………1552…………2810.............1114
S&P500…….. 968…………..876………….1561………..776
CBOE Eq. put/call …68……………83…….…..96-10/08….....46-1/03

VIX ………. 59.9…………79nh…….…….79..-10/08bull….10.0-7/05 bear

McClellan Osc………72…………..-38……………..91 -5 /04 bear...(-100)-10/08bull
McClelSum……….…-1441………-1514nl……..…....1568-6/03.......-1514-10/08
Newsletter Surveys:
Inv.Intel -Bull:…..…23.1………….22.2nl……….…63 (12/04bear)......22.2-10/08bull
Bear:………… 52.7…………54.4nh…..………… 54.4.10/08.......16-6/03

AAII-Bull/Bear ……37.1/40.3……38.7/38.7..……..n/a n/a
Public/NYSE Spec.-…17………….22nh… …….……22-10/08…………14.1
Bullish%- ………37…………….8………….…88 -2/04bear.....2-10/08bull
*Insider corporate sellers.3.6:1…….4:1…. ………..97………….4-10/08
Mutual Fund Inflows (2.3B)………200M
ETF InflowsL……….(.4B)……….500M……
Money Market Inflows: .(3B)………17B… ………144B

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THE RISE AND FALL: