Trader’s Narrative

I took a few days off (hope you didn’t miss me too much). Let’s catch up by looking at the important sentiment developments:
ISE Sentiment
I mentioned the ISEE during last week’s sentiment overview when it increased slightly as the market fell, showing that retail option traders were seemingly not worried. Even more bizarre, during the past […]

In the final days of last November, the financial sector looked cheap. Their bullish percent index was 16% and with news headlines about recession, sub-prime mortgages and the credit crunch, negative sentiment about them was rampant.
Things are very stretched to the downside here and we are ripe for a snap-back rally.
The Philadelphia Banking Index (BKX) […]

Continuing to look at the energy sector, here is another chart that shows some interesting technical characteristics:

A shallow angle of ascent provides for an uptrend’s longevity. But as it ramps higher at a steeper and steeper slope, then the trend is either about to end or reverse.
You can see in the case of S&P Oil […]

Continuing with the series, here is the fourth condition of a new bull market as outlined by Jim Stack of InvesTech:
I’ve hesitated to mention this technical indicator since I started writing this blog because it is almost too good. It is one of the few that have an uncanny ability to find the start of […]

Wow, check this out. I’m on Bloomberg!
No, not the website, but the Bloomberg Professional service. Click to enlarge the image - my article is second from the top: What is really going on with the price of oil?
It is on the NI HEDGE pages. I had no idea Bloomberg scoured the net, including blogs. […]