Trader’s Narrative

The Investor’s Intelligence Long Term Composite Indicator is a proprietary indicator generated from the scores awarded to over forty indicators. These indicators have been selected across a wide range of disciplines covering index trends, breadth, sentiment, money-flow and financial/economic factors. The scores awarded to each indicator are weighted to create an indicator that generates signals […]

Alright, here is the belated sentiment overview for the past week:
Sentiment Surveys
There was hardly a change in the LowRisk numbers with still about 57% bearish and only 32% bullish. The AAII bears increased to 59% while the bulls remained almost constant at 25%. So the retail investors are still very frightened - which is good […]

Darn, I meant to post this yesterday but, ran out of time. Now it won’t seem as brilliant but what the heck…
After the recent panic selling, the relationship between stocks and bonds got out of whack in a major way. Basically, relative to each other, stocks were very cheap and bonds very dear.
This […]

Two weeks ago I wondered if the financial sector had suffered enough… no, it hadn’t.
But things look quite different now. Today and yesterday we had a remarkable change in tone for this sector. Snap back rallies in a declining trend are characteristically sudden and intense but none of the recent ones in this sector approach […]

Today’s morning gap down freaked out a lot of longs (myself included). But if we could separate the last few hours into its own trading day, it would have been a knock out.
Contra Hour
The first hour belongs to the amateurs as their previous day’s orders are matched but the last hour of trading, referred to […]