Trader’s Narrative

This week sentiment recovered from the abyss into which it had fallen. This isn’t surprising considering the strong lift-off the market had last week. But even so, it doesn’t yet give us any reason to doubt the veracity nor the potential of the rally to continue.
Hulbert Newsletter Sentiment Index
According to Mark Hulbert, the Hulbert […]

Measuring the volume ratio of the Nasdaq and the NYSE goes back to the early days of technical analysis.
At its genesis, the Nasdaq was seen as a lesser exchange where smaller, younger and riskier companies who had yet to prove themselves got listed. The NYSE on the other hand was where these companies all […]

I received this question from a reader (Jim) on March 13th, 2008:

I love your updates, please keep up the good work!
My question is the following: Obviously we are in one of the worst bear markets (stocks) we have seen in a long time and all of the experts tell us novices that you MUST go […]

We stared into the abyss and staring back at us was this week’s sentiment overview:
Investor’s Intelligence
I mentioned in last week’s sentiment overview the surprising bearishness of newsletter writers as measured by Chartcraft. This week they have outdone themselves with an eye popping 44.7% bearish level.
To find this sentiment equally or more pessimistic, we’d have to […]

Amid all the wailing and gnashing of teeth, we had a successful IPO: Visa (V) went public yesterday and made history.
Not only was it a resounding success for the investment bankers in a very difficult time, it was also the biggest IPO ever at $18 billion. And it managed to jump +30% from its $44 […]