ETF SWING & DAY TRADING

[Walkingshadow]

Hi PT,

I agree, this is not a good place to judge sentiment. Dunno about the Investors Intelligence bull/bear estimate, but that seems very discordant with other indicators. The CBOE put/call for example has been drifting steadily downward since peaking above 1.00 in mid-October (I am referring to the 10 sma and 21 sma). About a month ago, the 10 sma dipped below the 0.75 level for a week or so, but was not followed by the 21 sma. Since then, both have drifted up into the neutral zone, but not very far.

IMHO when both dip below the 0.75 level and stay there for a week or two, that's the time to look for the exits.

Currently, these read 0.82 and 0.83. The CBOE put/call closed at 0.93 on Friday FWIW.

In any case, these are very bullish readings, and in fact are flirting with bullish extremes (which I define as the 10 sma and the 21 sma moving below 0.75).

I don't think these moving averages can get below 0.75 for another week or two at the earliest, and they tend to be leading indicators.

WS