Trader’s Narrative

Wall Street has a knack of bringing new financial products online just as the demand for them is at its zenith. In Wall St. parlance: when the ducks are quacking, feed them.
I’ve already mentioned several examples of this: Don’t Buy What Wall St. Sells
Here’s another:
On May 4th 2007, the iShares FTSE NAREIT Mortgage REITs Index […]

I mentioned last week that there was a mad dash towards “risk free” assets, namely short term T-Bills which drove their price sky high and caused their rate to crash through the floor.
Looking at the long term chart for the 3 month US government treasury bills the recent market dislocation is awe inspiring:

Believe it or […]

I’ve never seen the bullish percent for so many sectors hit extreme oversold levels as now. Refer to my previous post for a review of how I use to time the market with bullish percent charts.
Lets start out with the bullish percent chart for the S&P 500 index:

The broad market proxy is now lower than […]

So was that capitulation? I don’t mean today’s gangbusters market. I mean yesterday’s rollercoaster ride.
Let’s see…
Stop, Hammer Time!
The intraday reversal gave us a beautiful, textbook hammer candlestick. Using the traditional Japanese candlestick theory, after a downtrend this is a portent of the end of selling pressure. Although the low could be tested - especially with […]

Rundown of the usual and unusual sentiment measures for this most interesting trading week:
Hulbert Stock Newsletter Sentiment
The HSNSI measures the average stock market exposure among a subset of short-term market timing newsletters. As of yesterday’s close it reached -11.3%. Last week it was +8.6% when I pointed out that although that was low, usually we […]