Sentiment is now getting too bullish
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
>The Investors Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investors Edge” on over 50 radio stations. Gary is also
editor and publisher of “Gary Kaltbaum’s Trendwatch”…a weekly and monthly
technical analysis research report for the institutional investor. If you
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Gary…where have you been? Why have you
not written any reports recently?
It is simple. I do not have much to add to what we are seeing.
But just to be repetitive:
Despite ridiculously stretched, extended and overbought
conditions, the market refuses to correct for even a couple of days. As I have
said, this is really the most bullish of conditions when markets cannot correct.
It is still bullish that markets are trading way above all
moving averages. It is still bullish that there are many more positive groups
than negative. It is still bullish that more than 7 out of 10 stocks are in good
shape. It is still bullish that oil prices have come way down. It is still
bullish that the bond market has cooperated. It is still bullish that leading
stocks are acting powerfully here. It is still bullish that bad news is being
bought.
I did want to bring up a few points about sentiment. I
continue to see and read every day pundits calling for the market’s demise. For
me, I will let the market decide. I just wanted to let you know that on the
negative end, I am not thrilled that:
All of a sudden, I am seeing strategists calling for another 4
years of bull markets.
I am seeing outrageous price targets given out.
IPOs doubling the first day.
Buyouts…Buyouts and more Buyouts.
Let me be clear. This type of action does not happen at
bottoms.
So sentiment is now getting too bullish but I must say that is
understandable given the persistent move. Just make note that EVENTUALLY,
markets will come back to their norms…and normally, for every action, there is
an equal and opposite reaction. We have gone up with nary a correction which
means there is not a lot of great support if sellers do finally get the upper
hand. Stay on your toes!
So there you go…a lot of repetition. I told you so.
But what I really wanted to do is to send a message during
this Thanksgiving Holiday week. Of course, this is the week we give
thanks….but I believe we should always give thanks. We all have so much to be
thankful for. Too many harp on what’s not right instead of what is right. There
are still just too many negative nitwits out there. I believe we live in the
greatest of countries and our best days are ahead of us. If it has not been your
year, a few words to get you back on the right track…persistence, tenacity,
perseverance, and passion. Words to live by.
Lastly, a few other words I live by. Always do something for
someone you need absolutely nothing from! Think about it!