• Chartist Corner: One Chart That Should Scare The Bulls

    by  • March 15, 2013 2:32 pm • Breaking News, Broad Market Analysis, Chartist Corner

    It is expiration Friday and we are usually pretty busy, so here’s a quick chart that should give the bulls pause.

    With news highs being made just about everyday, one thing to be aware of is investors are getting excited.  Is this reason to sell everything?  No.  But don’t get trapped and go all in here either.  Heck, Mila Kunis just said she is investing in stocks for the first time in years.  This after being in cash during a huge bull market.

    Here’s a chart of the % of bears from the Investors Intelligence survey.  What you need to know is moves beneath 20% have been very worrisome going back the past few years.  This after stubbornly not breaking this area the past month.  Could this be the final capitulation?

    About

    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).

    http://schaefferstradingfloor.com/

    • Brandon Gilkey

      the chart of the put/call ratio is interesting to me, in that, it’s suggesting still some small upside to go

    • Brandon Gilkey

      you say could this be the final capitulation…well what do you think RD? After the sell off on the news, then rip up on the news, it feels like we may make some sort of spike to highs then fall hard…what do you think?

      • http://twitter.com/RyanDetrick Ryan Detrick, CMT

        Thx for the comments. Don’t think this is the ‘final’ capitulation. But in the near-term very well could say we are getting close to the typical Spring peak and Summer pullback.

    • dennis king

      On the SPY index I note an evening star formation on the candlesticks for the last 3 days trading when the true low for 3/14/13 of 155.23 rather than the published misquote of 155.91 is taken into account.