kingworldnews.com / November 6, 2014
As global stock markets continue their wild ride, a troubling trend is now emerging!
Here is the latest Investors Intelligence report along with the all-important sentiment chart: The strong index rally from mid-October lows continued. Friday’s finish showed the primary averages either close to or just above their Sep peaks, with quick rallies of 10% or more in just over two weeks. Indicators also gained more ground with some short term charts reaching overbought territory. Those are not yet broadly shown and prior tops are still above the current levels. They show moves from their worst oversold lows since late 2011. Most newsletter editors are technical oriented and noted that action, with further optimism shown and more buying. The bulls are again nearly lofty readings, pointing to fully invested stances and market tops.
With a second large weekly increase the bulls were 54.6%, up from 47.0% a week ago. That is up 19.3% from the reading before that and nearly back to the 57.6% bulls at the start of Sep. The bulls hit their 2014 high at 62.6% early Jun. The very fast index run back to highs and longer term indicator improvement means we may see another reading above 60% before too long. Bulls above 50% show increasing risk while +60% levels point to near fully invested outlooks that usually precede a stock market top. Their low two-weeks ago showed they had raised cash.
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