Sentiment
reached 66% Friday, so 2 out of every 3 traders using the Rydex leveraged funds
we track are betting that we have up days ahead. That is a big concern since Sentiment is an
inverse indicator. Strong bullish
sentiment correlates to negative stock market returns…usually, but not always. Sometimes the crowd is right for a awhile.
The
rest of the NTSM indicators are neutral so we are not yet ready to issue
another sell. We’ll just have to watch
and wait.
I
remain 100% long in stocks. (See the page How to Use the NTSM System). That is way too aggressive for most people
and I don’t recommend it unless you have a high tolerance for risk.
