coolhand's Account Talk

[tsptalk]

Same with AAII, so this week's AAII survey, which ends at noon on Wednesday's, was over before the Fed decision.

 

[coolhand]

Of course, changes in sentiment can occur at any time in between readings. We have no way of really knowing. We also have the spending bill drama unolding.

 

[WorkFE]

We also have the spending bill drama unfolding.

Which I thought would have a bigger negative effect on today. Of course there are 2 hours to go.

 

[coolhand]

The markets are in turmoil in the premarket. While NAAIM sentiment was bullish in the latest reading, economic conditions can change quickly and sentiment can shift as a result. There is an expectation for a Santa rally, but it is not a lock. Fact is, there is a lot going on domestically and internationally and I am pretty certain it's going to get crazy in the weeks ahead (not that it isn't already). Stay aware of market indicators and be willing to make adjustments to personal expectations. It is not my intent to sound bearish, but conditions are such that caution is warranted. What is your risk tolerance? Only you can answer that. I wish everyone the best.

 

[coolhand]

This week's NAAIM reading shows the mean average dipping a bit more than 2 pts. That keeps it bullish. Last week, the bears were fully short, but not leveraged. This week the bears are fully short AND leveraged. The bulls remain fully long and leveraged. So, the bears are looking to capture some gains on the short side, but given the reading remains bullish any downside may remain limited.