May 30, 2006
Current Market Sentiment
Both the Volatility Index (VIX) and ISE Sentiment Index spiked higher in the last two weeks. This sets up a “buy” above last week’s high. If the buy fails then we’ll know the recent top is significant. My media survey is showing very little pessimism, which makes me think that buying this dip is fraught with danger.
Of course when The Economist puts a bear on its cover, we’re pretty much guaranteed a nice rally. Always remember that gauging sentiment is an art not a science.
Cat: | Time: 8:06 am (utc+8)
May 30th, 2006 at 11:52 am
A stock tip! Awesome. If OIH doesn’t work I want my money back! ;-)
Funny thing about The Economist. I don’t read it because of its international politics coverage which is rubbish.
May 30th, 2006 at 12:23 pm
Eyal: The “tip” will be most valuable if the trade fails, just like the failed trade in TOL which marked the top not just of Toll Brothers but the whole Homebuilders group.
May 30th, 2006 at 5:39 pm
all you can say at the moment is, that the market is in for a “correction”..of course, all trend reversal starts as a correction…so far the sp500 is showing trend resumption and im looking to buy puts above the 1300 level
June 8th, 2006 at 8:09 am
[…] Among the 249 ETFs I follow (well, the computer follows), the Oil Services HOLDR (OIH) was down the most. The trade that I suggested recently is very close to failing, which is a good thing because it makes me sure the highs hit in April (around $160) will mark a significant top. As I said in the comments section at the time: Eyal: The “tip” will be most valuable if the trade fails, just like the failed trade in TOL which marked the top not just of Toll Brothers but the whole Homebuilders group. […]