Interesting piece on Retail Investor`s sentiment:
"The bulls are officially on parade. It’s all blue skies from here. QE2 has saved the economy and the USA is set for another epic stock market rally that will involve no downside. At least that’s the sentiment expressed by the most recent small investor survey. Of course, these are the same investors whose sentiment was near an all-time low just 7 weeks ago with a bullish reading of 20.7% and an S&P 500 that was almost 15% lower."
With that said, I would also like to add Marc Faber`s short term stock market outlook, "A correction is overdue, but I would not think that a bear market is around the corner. The correction will be a buying opportunity and then we will have a boom in stocks and in commodities like we had between the end of 1999 and March 2000 when markets went up very strongly."
So for now, it seems that the line of least resistance will be down. Some important data is to be released later today (GDP, Chicago PMI and Consumer Sentiment). I will keep an eye on the Chicago PMi and especially on Monday`s ISM Manufacturing numbers. As you remember this recent rally has started with an upbeat ISM in the end of August or early September.
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