Today’s column talks about the breakout in the S&P 500, the breakout 10 days ago in the NDX and the lack of breakout in many other indices. It also covers a bit on sentiment with no hard conclusions other than the fear we say in August is completely gone.
Just wanted to give the nod to two of my sources that did not make it into the column.
Jason Goepfert of Sentimentrader.com said that the AAII data is not that reliable and short interest is not good too. He did say mutual fund cash levels were very low but that many funds are constrained to keep it that way. Therefore, he does not see an exuberant market.
Todd Salamone at Schaeffer’s Investment Research said that hedge funds have been underweighted stocks for a while and are just now accumulating. Again, no frothiness.
Subjectively, I don’t read a whole lot from fundamental types that do not say the recovery is at least plodding along and companies are making plenty of money.
Then again, that does not include Peter Schiff, to whom I had the pleasure of speaking a few occasions. Too bad I could not vote in the Connecticut primary for US Senator.
