Coolhand's Market Analysis

Originally Posted by coolhand

For all the downside pressure the bears tried to put on last week, the C and S funds still managed to eke out modest gains on the week. Friday's action, coming just 1 day after a decisively bullish NAAIM reading, saw more back and forth price movement that resulted in largely a mixed close on the day. Keep in mind that NAAIM readings are not daily readings. They are weekly readings, so instant gratification is not a given.




Still no real technical damage on these charts. The market was overbought on the DWCPF, so a pullback was certainly not unexpected. But also notice that price on the DWCPF is only modestly below its all-time closing high. This does seem to suggest underlying strength in the overall market.



Breadth remains weak of late, but is still bullish.

The TSP Talk sentiment came in less bullish than last week, but still leaning bullish.

NAAIM, as we know, came in bulled up last Thursday. That reading is likely to get right soon. I'd say within the next couple of trading days. These readings should be used to give one an overall sense of how the smart money is not only feeling, but how they are positioning. Remember, they are smart money for a reason. They often have access to information that we do not. I feel more strongly about this sentiment reading than any other and right now they are positioned for gains on the long side.

I remain bullish.