Comments on: Some Further Signs Of Caution For The Market http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html Freshly squeezed market commentary & analysis Mon, 22 Mar 2010 13:50:25 +0000 http://wordpress.org/?v=2.0.2 by: Douglas http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38343 Sat, 11 Apr 2009 00:09:37 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38343 'Cramer should not be referenced. His lack of credibility erodes all who refer to him.' I disagree. He seems to distill market sentiment in himself. He is a good contrarian indicator. Just listen to what he advises and do the opposite. He is there to give people the opportunity to learn from their mistakes. He represents the mistakes of the investorati. It is probably easier for people to learn from someone who is wrong and waves flags and jumps about rather than a softly spoken boring (and wrong) mainstream market commentator who can more easily later hide his mistakes. ‘Cramer should not be referenced. His lack of credibility erodes all who refer to him.’

I disagree. He seems to distill market sentiment in himself. He is a good contrarian indicator. Just listen to what he advises and do the opposite.

He is there to give people the opportunity to learn from their mistakes. He represents the mistakes of the investorati.

It is probably easier for people to learn from someone who is wrong and waves flags and jumps about rather than a softly spoken boring (and wrong) mainstream market commentator who can more easily later hide his mistakes.

]]> by: Vin http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38313 Thu, 09 Apr 2009 15:28:21 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38313 Babak, I believe Doug Kass has correctly made great overall market direction calls the last few years. According to your weekend posts, Kass thinks the market will consolidate over the next couple of months and not go much lower. Also, he sees markets rocketing higher in summer. With VIX trending lower, I'm jumping in his camp. I think all the overbought indicators will only percipitate into small corrections and not test of March lows. Babak,

I believe Doug Kass has correctly made great overall market direction calls the last few years. According to your weekend posts, Kass thinks the market will consolidate over the next couple of months and not go much lower. Also, he sees markets rocketing higher in summer. With VIX trending lower, I’m jumping in his camp.

I think all the overbought indicators will only percipitate into small corrections and not test of March lows.

]]> by: redvetttes http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38311 Thu, 09 Apr 2009 13:26:27 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38311 pump and dump dont be the last one in the room my take pump and dump

dont be the last one in the room

my take

]]> by: X http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38310 Thu, 09 Apr 2009 13:19:44 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38310 Cramer should not be referenced. His lack of credibility erodes all who refer to him. Anyone who has already taken advice from him or his sponsor is unfortunate enough already - there is no need to spread the malignancy. Cramer should not be referenced. His lack of credibility erodes all who refer to him. Anyone who has already taken advice from him or his sponsor is unfortunate enough already - there is no need to spread the malignancy.

]]> by: jeremy http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38304 Thu, 09 Apr 2009 07:37:30 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38304 Strong cross currents may lead to a sideways market, i thought sentiment and news flow was quite bullish yesterday, surprising after Alcoa's results. Excellent posts as usual Babak. Strong cross currents may lead to a sideways market, i thought sentiment and news flow was quite bullish yesterday, surprising after Alcoa’s results.
Excellent posts as usual Babak.

]]> by: Babak http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38297 Thu, 09 Apr 2009 04:45:10 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38297 Vin, that would definitely be a factor. Especially considering the extremely low interest rates and how option selling is a way to generate yield. Having said that, there are specific ways of measuring option activity which filter out a lot of that. For example, the ISEE index I mentioned only counts small or retail opening trades in calls and puts. So as always there are cross currents to navigate but I think if we look carefully it is possible to detect old patterns. Vin, that would definitely be a factor. Especially considering the extremely low interest rates and how option selling is a way to generate yield. Having said that, there are specific ways of measuring option activity which filter out a lot of that. For example, the ISEE index I mentioned only counts small or retail opening trades in calls and puts. So as always there are cross currents to navigate but I think if we look carefully it is possible to detect old patterns.

]]> by: Vin http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38295 Thu, 09 Apr 2009 03:49:46 +0000 http://www.tradersnarrative.com/some-further-signs-of-caution-for-the-market-2438.html#comment-38295 Babak, From what I hear on CNBC, there has been lot of covered calls being sold lately. This will somewhat explain your charts. Also, this is trickling into reduced VIX. Does the covered call activity/strategy concern you in your posture that we will see correction here? Babak,

From what I hear on CNBC, there has been lot of covered calls being sold lately. This will somewhat explain your charts. Also, this is trickling into reduced VIX. Does the covered call activity/strategy concern you in your posture that we will see correction here?

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