I am a great proponent of sentiment in analysing the markets. As...

I am a great proponent of sentiment in analysing the markets. As mentioned recently, when sentiment on this thread got so negative in late December, I went shopping for stocks that had slipped back into what I saw as buying zones. A comparison with 1987 really sparked my interest so on that day I bought some AGO. Sold them this morning for a nice profit. May go higher but I am pretty happy with the trade. But goodness this has been a good indicator over the years. I was on a dealing desk in 1987 and as far as I am concerned sentiment late last year was nothing like l987. Whether such a simple indicator will continue to work, I have no idea.

But I have felt that overall sentiment out there in the big wide world has been very bullish for the market recently, culminating in yesterday’s warning from the World Bank. Hello..... where were they in 2008? They didn’t even see that coming down the road, so how come they are so clever this time.

Just wish there were more bulls on the XJO thread at the moment – then I could really feel confident about a correction. I have had a target of 1325/1350 on the SPX for months – does it have to get there before a turn.

Will be very interested in how the NAAIM figures stand this week. Will they have over 50% of their money in the market? Don’t forget they were net short at the bottom