Beware the pitfalls of a struggling market absent constructive long interest.We will make you ornaments of gold
With studs of silver.
—Song of Solomon
* * * * *
Are you hearing the buzz about poor investor sentiment? The thinking is this is a good "contrary indicator" suggesting the stock market is about to launch on a sustained advance.
I'm not falling for it.
Over at Barry Ritholz's Big Picture blog you can read his post of a day ago on the market's decidedly negative sentiment. This is fine accompaniment to my thoughts on AAII bullish sentiment as this measure presently rivals lows recorded at March '09 bottom.
After you read Ritholz's post ask yourself this...
When "fewer than 29 percent of ratings for stocks covered by brokerages worldwide are 'buys,'" from where will support come should conditions suddenly become vulnerable to panic?
—Tom Chechatka
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