As of last week, the Market Climate for stocks remained
characterized by strenuous overvaluation, strenuous overbought
conditions, overbullish sentiment, and hostile yield pressures.
True to its short-term form in these conditions, the market pushed
to yet another marginal new high last week. The tendency for the
market to shrug off widely observed overbought conditions may make
it seem that these conditions don't matter. But I can't stress
enough that the pattern of short-term continuation to marginal new
highs is quite typical once the market establishes this syndrome of
conditions, following which
abrupt, nearly vertical
losses are also typical- if unpredictable in timing.
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Hussman's weekly commentaryis in agreement. As
Comment
Posted by george_l on 12th of Apr 2010 at 03:34 pm
Hussman's weekly commentaryis in agreement.
As of last week, the Market Climate for stocks remained characterized by strenuous overvaluation, strenuous overbought conditions, overbullish sentiment, and hostile yield pressures. True to its short-term form in these conditions, the market pushed to yet another marginal new high last week. The tendency for the market to shrug off widely observed overbought conditions may make it seem that these conditions don't matter. But I can't stress enough that the pattern of short-term continuation to marginal new highs is quite typical once the market establishes this syndrome of conditions, following which abrupt, nearly vertical losses are also typical- if unpredictable in timing.