Wednesday, August 25, 2010

Sentiment from inside the markets

Yes, today saw the stock market dip way down and close with a gain. As I wrote in my column,  the S&P dipped into its support zone after falling for most of August. Oversold, ready to bounce and with sentiment growing more bearish all the time.

Bonds scored a bearish one-day reversal so end of flight to safety, right? Well, copper came back from its lows but closed negative. Crude oil closed way negative so this is corrective looking to me.

Where else is sentiment? All those economic reports that keep coming in worse than expected. It just shows that hope springs eternal when they pay you to paint a rosy picture of the market so investors will do business with their firms.  The Chinese Wall or whatever ethical divide they put in there between sales and analysis is just garbage.

Vive la independent research!

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