Tuesday, September 27, 2011

Sentiment Extremes in the last 3 weeks

From T&C forum post I made a few days ago: "Sentiment continues extreme, we have now 3 weeks straight with PC ratios over 1.00, today again at 1.03. This suggest we will get a short squeeze from Hell, before any Serious decline manifest, until then we remain in the 8/9L -8/31H trading range."

In the last post I mentioned about a possible flash crash Low in October, however, the extreme bearish sentiment the last 3 weeks was a serious concern.  

There is only one solution: Get rid of all those Bears first, with a powerful short squeeze rally from Hell. That is what is in progress now. Premature Bears needs to be careful.

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