Coolhand's Market Analysis
Bearish Sentiment Yields More Gains
by , 04-29-2012 at 05:07 PM (3534 Views)
Last week, the Total Tracker revealed a modest dip in stock allocations (less than 3.5%), but sentiment was much more bearish as reported by our sentiment survey. That bearish sentiment helped stocks tack on significant gains for the week.
This week, the Total Tracker shows more profit taking as total stock allocations dropped again. Bullish levels rose and bearish levels dropped in this week's sentiment survey, which keeps the sentiment survey in a hold (buy) condition.
The Top 50 remained very committed to a high stock allocation going into the new week.
As I already mentioned, and as you can see, total stock allocations fell for the new week (by 5.1%) to a total stock allocation of 53.44%.
From a sentiment point of view, we don't appear to be anywhere near a longer term top. But we are sure due for a more serious correction. But selling pressure has remained largely contained and short lived. And at the moment, I don't see that market character changing, but we'll just have to see how it plays out over the coming weeks.
If you didn't see the allocation change, the Seven Sentinels went to an intermediate term buy condition on the 25th of April. The IFT was executed on the 26th.
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