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Investors Intelligence Newsletter continues:
“The bears dropped slightly to 25.6% from 26.6% last week. Their number read 20.4% at the start of May when the indexes were still near their highs.
The shift from the bears was to the correction camp and that reading is now 37.2%, up from last week's 36.2%. Their readings have remained high for seven-weeks, with the peak at 40.9% shown with the start of May. That was a multi-decade high (2-Sep-83 counted 43.3%). In Jan/Feb the correction readings were near 20% as the averages all set highs.
The difference between the bulls and bears expanded again and now stands at +11.6%, after narrowing sharply to +7.4% two weeks ago. The spread has fallen sharply from +31.5% late March. That entered dangerous territory of +30% and above. In Apr-11 the difference reached a scary +40%.
In contrast the spread was pointing to a rally with a negative reading of -11.9% at the start of Oct-11. This is a contrarian indicator. Wide negative spreads [below zero] show low risk for new positions. High readings [above zero] signal increasing risk. The recent data is not overheated and supports an equity rally.”
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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with James Turk and John Mauldin are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Egon von Greyerz, Gerald Celente, John Embry, Bill Fleckenstein and MEP Nigel Farage by CLICKING HERE.
Eric King
Global Markets On The Move, What To Look For Next
With tremendous volatility in global markets, investors and professionals are wondering where the markets are headed from here. Today King World News wanted share with its readers key portions from the latest Investors Intelligence report: “The bulls saw no change at 37.2% and that is positive for further market gains. Two weeks ago they were at 34.0%, their lowest level since Sep-10 (33.3%).”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
June 22, 2012
