TSP Talk Sentiment Survey results for the week of 7/18/11- 07/22/11 Buy: The TSP Talk Sentiment Survey came in at 34% bulls, 52% bears, for a bulls to bears ratio of 0.65 to 1. That is a fresh buy signal so the system's allocation remains 100% S-Fund the week of 07/18/11 - 07/22/11. Bull market rules are in affect since 9/27/10: See latest survey results To discuss or comment on the Sentiment Survey, go to Sentiment Survey Talk
The bulls got started early today, taking the market moderately higher in the first hour of trade in spite of some late news yesterday that Moody's was threatening to downgrade the US "AAA" credit rating. Apparently, the market doesn't expect Congress to allow a US default. And with more than two weeks to go till the debt crisis deadline, why worry? And besides, Ben Bernanke has already hinted at QE3. He's got the market's back.
Updated 07-14-2011 at 09:12 PM by coolhand (Reversed readings on TRIN and TRINQ = No effect on analysis)
Testing support - It was another wild day on Wall Street yesterday. If you checked the numbers at the end of the day and saw a 45-point gain in the Dow, and the modest gains in the other major indices, it would not tell the whole story. Having been up 160-points earlier in the day, the 45-point gains looks more like a victory for the bears... Current Daily Market Commentary Market Commentary for 7/14/11
In my Sunday blog, I pointed out that it appeared we were selling rallies on strength in spite of more bullish sentiment readings in our weekly survey. Apparently, the broader market is currently subscribing to the same strategy as significant gains earlier in the day began to melt away before noon. By the close the DOW posted a gain of 0.36%, while the S&P 500 and Nasdaq posted 0.31% and 0.54% gains respectively.
The buying pressure
Updated 07-14-2011 at 06:33 AM by coolhand
Interesting action - Stocks were all over the place yesterday as the futures were sharply lower in the early pre-market trading hours, the open was flat, we saw seesaw action above and below the break-even mark for much of the day, then a quick, sharp spike higher after rumors of a QE3 spread, followed by a weak close. The Dow closed down 59-points... Current Daily Market Commentary Market Commentary for 7/13/11