Wednesday, April 6, 2011

Market Alert

Today Investors Intelligence reported Advisor Sentiment numbers...
Bulls moved up to 57.3%
Bears dropped down to 15.7%
Corrections increased to 27.0%

One of the calculations used to analyze Advisor Sentiment numbers  is the spread between the Bulls and the Bears...Today the spread increased to 41.6%...It was 42.4% in October 2007 at the all time high in the DJIA...

Note that the Bears were 15.6% in December 2009 before the market correction into February 2010...The market then rallied into April 2010 before the sell off into the June/July 2010 bottom...

We think that we may have an April/May sell off and then a rally to a May/June top...

But, we will continue to let our Trend Following Signals guide us through the market since it has been doing a very fine job so far...


Past performance is not indicative of future results.

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