- The worst of the overbought reading should be worked off by tomorrow's close. That would not make us oversold. It likely would make us neutral to slightly overbought.
- This would be the first time in over a half a year that an overbought reading did not do a lot of damage.
- I think that a whack coincident with us working off the overbought reading is likely buyable.
- The tougher call would be if we rallied into tomorrows close.
- Jefferies came out negative on the software sector today due to a tough 2012. No matter that they were bullish 30% higher. Did they think there would never be a slowdown?
- In the long run valuation is the only predictive factor of stock prices, yet most analysts completely ignore it.
- What do readers believe the current state of market sentiment is? Are we seeing too much/extreme optimism?
Its difficult to come up with full length posts when the market has not budged in a week. Instead I will go with some random thoughts: