Friday, August 3, 2007
Sentiment Tells Us Lower Prices Are Still In The Cards
Even after a decline of 7.8%, we really have yet to see the masses in a panic.
The chart above is just one indication of this. If the market was putting in a low of some sort
then we would expect this sentiment measure to be at a higher ratio.
All of these things really help to support the theory that we will get a 12-15% correction before a low of substance is put into place. Right now it looks like most investors are just looking at this pullback as a normal correction in an ongoing bull market.
However, get the indexes down 12-15% and I am sure the vast majority will be screaming Bear Market. At the time that this occurs....BUY BUY BUY!!