Can the Stock Market Continue Rising? Gold, Too?
July 23, 2010 at 09:17 AM EDT
The stock market, we know, moves from one emotional extreme to the other. Fear to greed, back to fear then greed, and so on. And a good stock trader should always be asking him/herself, are we at an extreme now and if so, which one? This chart is my attempt to communicate that we are at an extreme in sentiment. And it turns out that the extreme at this time is FEAR, not greed. The upper portion of this chart is the weekly SPX for the past four years. The lower portion of the chart is data from Investor’s Intelligence and graphically measures their weekly readings of bearish investment advisors. …