Friday, August 3, 2007

Sentiment Tells Us Lower Prices Are Still In The Cards




What is it going to take to get the masses nervous again and on their guard!

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!!

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