NYSE Bullish Percent at Record Lows
Just a quick note: The NYSE Bullish Percent is now sitting at 9%.
It has not been this low in over 20 years. We’re talking about fear and panic based pessimism here.
Five weeks ago, it was at 45%.
There is definitely opportunity for a trade here. But, with the magnitude of this crisis, I’m waiting until we get a reversal up to 16% before going long equities. We could still have more distressed, forced selling, so I want to see some demand come back into stocks in the short run. My longer term outlook is still bearish, however.
If we get a coordinated global intervention by the Central Banks, and the dollar is showing strength, I’m looking at buying the [[QQQQ]] , and focusing on the small and mid cap growth indices via [[IWO]] and [[IJK]] . This gets me immediate exposure to stocks. Costanza developing…………..
futures down 200: http://www.bloomerg.com/markets/stocks/futures.html
October 8th, 2008 at 1:46 amrate cuts r us…… looks like the punch bowl has been passed around today…the Japanese took it in the groin last night
October 8th, 2008 at 8:57 amI’m working with EOD data on these ideas. These are intermed swing trades in weeks, not days.
October 8th, 2008 at 11:10 amI don’t think it’s not fear and panic. I think the equity market is behaving completely rational.
When the credit markets shut down, commerce stops. That means estimates for earnings are way, way, way too high.
October 8th, 2008 at 12:14 pm