Good News and Bad News

The good news is that the market is now oversold heading into a seasonally strong period. The bad news is that sentiment is not yet in place. The CBOE is showing put activity but the ISE is showing call buying. In other words the oversold readings are lining up, seasonality is lining up but sentiment is iffy. It would be nice if we broke last weeks low. That would likely get sentiment in place for a rally.

2 comments:

Anonymous said...

Jason Goepfert (Sentiment Trader) seldom send a second daily edition to his subscribers. He did it yesterday night and wrote: “With a slew of negative headlines, stocks dropped at the open and stayed their all day, but oddly enough we didn't register any notable new bullish (for the market) extremes. In fact, they declined.”

Tsachy Mishal said...

At this point if we get further weakness combined with some put buying I think it could be bought for the next week or so. Its not a great opportunity by a longshot. But I think its worth a trade.