Since the mid June low in stocks the Dow and SPX have recovered ~75% of the previous decline. The 2CS (inverse to price) is down to 77, so there is still room for advancing. Most stock index highs of the past two years came with 2CS under 70.
But there are some highs in other sentiment and volume indicators showing greater exuberance. Usually the volume exuberance will lead to a short term pullback, but it can represent greater energy for a large up move, as in March 2009. For now I'm going stay long stock funds and closed-end and ETF vehicles.
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