Thursday, November 19, 2009

11.19.09 - Comeuppance vs. SPX 1,090 Support

The S&P finally hit an air pocket after days of lateral move and mixed technical indications.  Normally I'd expect this reaction to take us back to 1,080, but for now we are finding good support at the round SPX 1,090 level, and we'll just have to see how enticing this is as a buy for the late-to-the-gamers.  Our Market Sentiment reading is very negative and was pegged at zero at one point.

Maybe you can guess where I find myself once more based on today's graphic... sigh.  Fortunately I have been playing the chop on the short-side with small tactical positions, and they have worked out well today though honestly this could have just as well been the belated move to 1,120 on the right news I suppose.


iv said...

if market sentiment is clos to zero while we are close to the highs.....does that meke you bullish in ?

jgpietsch said...

Most certainly not! Though I currently use the indicator for intra-day reads, mind you. Best, J

Mike said...

I think we're real close to a multi-year top in many stock markets around the world in part because of all of the misstepts by governments to try to control the business cycle and disrupt the free market. But there are still some individual names I like going forward because of what the govt is doing to try to help the economy. One of which is Golden Star Resources, ticker GSS, a junior gold mining company which reported earnings recently and whose stock has performed rather well this year. Here is a discussion on their earnings and some thoughts on Golden Star Resources . I wouldn't necessarily step in and buy the stock today, but I would definitely would on a 5-10% pullback. I think the macro environment is going to remain very favorable for gold for the next several years because of the deflationary threats of the credit crisis and the inflationary policies of the Federal Reserve in trying to combat these issues.