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Our sentiment survey remains on a buy for next week, as does the Seven Sentinels. Bearish sentiment has been a big part of this current advance and I keep looking for clues as to when sentiment may be turning. While our sentiment survey is more bullish than it was last week, we still harbor plenty of bears and this weeks charts "bear" that out.
The Top 50 has certainly jumped into stocks in a big way the past week,
Yesterday I said it was all about jobs. And it was. But the market often seems to move in accordance with its own twisted logic. Today was no exception.
At first glance, today's news that September nonfarm payrolls fell by -95,000 (zero had been expected) and private payrolls increased by 64,000 (74,000 had been expected) should have invited a serious decline. But it didn't. How could the market possibly rally on a continued poor jobs picture? Apparently it was through the realization
Updated 10-09-2010 at 06:29 AM by coolhand
Today's market action, while certainly weak overall, didn't give many clues as far as what we might expect when Friday's non-farm payrolls data is released. After opening higher the market fell and remained in the red a good part of the day, but did manage to close mixed overall. Let's take a look at today's market data.
Initial claims came in at 445,000, which was a little below the forcast of 455,000 claims. Continuing claims fell 48,000 to 4.46 million, just a tad higher than the
On Monday's weakness I opted to follow my short term buy signal and upped my stock exposure to 60%. On Tuesday the stock market took off and never looked back, closing well above resistance on the S&P. I wasn't sure I'd get another gift dip to buy into as that rally seemed to be making a statement to the bears. But we got one today and so I deployed the rest of my capital, including a 20% allocation to the F fund, which has been a steady performer all year.
This morning saw some negative
Yesterday, my new short term system gave me a buy signal, but my intermediate term system (Seven Sentinels) gave me a sell, albeit not confirmed. I was pretty sure the bearish sentiment would limit technical damage, but I was expecting a bit more pressure to the downside to shake weak-handed bulls. Well, bearish sentiment limited the damage alright, but there was no way the bulls were going to let anyone back into the market without paying a higher price.
The catalyst? It would seem