Coming amidst extreme bearish sentiment readings and oversold technical levels, last week’s positive market price action suggests that an intermediate-term bottom of some sort may be in place. Whether this proves to be consolidation in a larger decline, or something more bullish remains to be seen. New positions Southern Copper (PCU) – On Thursday I [...]
Market sentiment and technical oversold levels remain at extreme levels, and positive divergences may be developing on the most recent price weakness. While these continue to suggest potential signs of a near-term bottom, continued weak price action is indicating that a move to the 2002-2003 market lows – about 7,200-7,500 for the DJIA and 770-800 [...]
Last Thursday’s retest of the recent market lows suggests either consolidation in the downtrend or a potential bottom of some sort. Considering the continuing high current levels of bearish sentiment and oversold technical readings, the odds seem high for a sideways or upwards bias, while a move to new lows in the near term would [...]
The markets appear headed to ultimately test – or perhaps even break below – their 2002 lows as part of what now appears to be a huge sideways correction of the bull market of the 80s and 90s. The good news is that, if true, this “third wave” event may well be setting the stage [...]
The exuberant rally following the initial announcement of the bailout plan proposal over a week ago turns out to have been just another bounce in an ongoing decline. While that rally exhibited short-term extreme optimism (and was therefore negative), the longer-term picture continues to show bearish sentiment at high levels (a positive sign), but which [...]
