The Golden Sunrise
The essential morning read for investors!
Golden Sunrise is the Golden Surveyor’s broad-based market and world view.
Written daily 4am-7am by markets information specialist GS John!
Today’s Golden Sunrise
Thursday, June 10, 2010
Hours of daily research consolidated for you
Bull Market in Bearish Sentiment
Investor’s Business Daily reported this morning the bullish sentiment indicator had declined from 39.8 to 38.5%. This weekly measure had been as high as 56% in early May. The Bearish indicator jumped from 28.4 to 38.9% in the last week’s measurements. This number had been as low as 18% at the beginning of May.
Among key tests now is the S&P 500. Some analysts are beginning to conclude that a Head and Shoulders has formed with the distance from the neckline at around the 1040 would trigger a decline to 860 should that key level be broken.
Asian Markets were positive last night (except for Shanghai despite reporting a big jump in May exports year-over-year), Europe is positive as all the news today is interpreted that way and US futures are very green.
Gold is taking a $5 hit to the low $1220s this morning. In the 1220s!
The markets have had a real propensity to reverse intra day for the last several weeks. The market rose sharply the last hour of trading yesterday.
The stimulus and QE induced “better data” have generated some bullishness and euphoria going forward and at the same time have other heads nodding and commenting that the withdrawal pain is going to be severe.
Mr. Market will give us the answers in his own good time and likes, no loves, to set up obvious patterns and reverse them. The Head and Shoulders that formed last June after the sharp run-up from the March lows was evident to everyone and told us that the markets were heading back there if the neckline was broken to the downside which, of course, did not happen.
The beauty of all this is that one can make a case for up, down, sideways with compelling and ample evidence to support the contention. The recent days’ bounces may be telling us that we all get to have our opinion validated for a day or two, sometimes an hour or less but that maybe, just maybe it isn’t smart to have a point of view but just following directions is the most prudent strategy.
JohnR
Goldensurveyor.com
