Make It Six

The S&P 500 futures are down 10 points in the pre-market. Today would be the sixth straight down day if we finish lower. Normally, the odds of some sort of a short term bounce would be high after six down days but we are still not seeing the type of negativity that should be present.

Short term newsletter writers that Hulbert tracks are recommending a net long exposure of 52.5%. They have actually increased their recommended exposure into the teeth of this decline, which is a negative from a contrary standpoint. Rydex traders are also positioned optimistically.

The bad news on the earnings front and from the EU continues to roll in. With all this bad news I am not willing to step in and buy until I see excess pessimism. While we could bounce on the sixth day this is not a fat enough pitch for me.

5 comments:

Dirigi said...

Tsachy, how come no major shareholder of symantech is saying something at all, as the bloodshed keeps going on and on, while managment is sitting on huge piles of cash and does nothing ?

Tsachy Mishal said...

I wish I knew. I want to cry this is so painful.

Tsachy Mishal said...

A better answer is that the major shareholders are mutual funds and they are rarely activists. If an activist came in its possible the mutual funds would vote with the activit but an activist would have to come first.

Dirigi said...

I wish I knew people who carry some weight among major shareholders. Management should be reminded that they are responsible to bring value to shareholders. It looks like they have forgotten that a long time ago.

Tsachy Mishal said...

Im shocked that an activist has not come into this stock yet.