Thread: Using Sentiment as a LT Entry/Exit Point

Originally Posted by Bullitt

I think we are still in the Denial phase. We'll be in Despondency when Birch tell everybody to go 100% cash.

I think we just moved from Hope back to Capitulation/Despondency today after the Big 3 and Citigroup antics. All guesswork on my part. A few guys at work were talking how they sold the day after the Pelosi-vote debacle and don't plan on getting back in until 'it's all clear'.

I'm feeling depressed but the 37 stock buys remaining on my current list are certainly cheaper after today and that includes C at under $7.00.

Originally Posted by Birchtree

I'm feeling depressed but the 37 stock buys remaining on my current list are certainly cheaper after today and that includes C at under $7.00.

They'll be cheaper in December.

This is another chart of the type that started this thread. It was on the Jason Kelly site this morning. Brings the sections of the cycle into the read world. NOW where do you think we are in the cycle?

My guess is about today we'll see step #11, "I'm selling out and staying out."

http://jasonkelly.com/

Lady

Originally Posted by Birchtree

I'm feeling depressed but the 37 stock buys remaining on my current list are certainly cheaper after today and that includes C at under $7.00.

I'll be in at that level 100%

I'm pushing #14. The C I mentioned was Citigroup which is now selling for $5.08 - there just isn't any confidence in the banking sector. To me that is classic of a deep bottom and time to load up in preparation for the next three years.

Originally Posted by XL-entLady

This is another chart of the type that started this thread. It was on the Jason Kelly site this morning. Brings the sections of the cycle into the read world. NOW where do you think we are in the cycle?

My guess is about today we'll see step #11, "I'm selling out and staying out."

http://jasonkelly.com/

Lady

I like it!

Play it again Sam. What was today, our 5th or 6th 'Capitulation'?

We've lost 'Hope'.

Originally Posted by Birchtree

I'm feeling depressed but the 37 stock buys remaining on my current list are certainly cheaper after today and that includes C at under $7.00.

In October 1987 there were 35 S&P 500 Index stocks that traded for less than $10 a share. In the aftermath of the September 11th terrorist attack, 59 S&P 500 Index companies traded for less than $10 a share. Right now we are going through a similar situation.

Currently there are about 101 S&P 500 Index stocks trading at sub $10 a share. Unbelievably, one S&P 500 component, E*Trade (ETFC), closed below $1 a share. And there are 36 stocks trading below $5 a share. These are levels at which stocks are called “penny stocks”. You can find a table of the constituents, ordered by share price


http://www.tradersnarrative.com/

I'll keep buying as long as I can write my name in the snow - no hands.