Just a quick post to cap the week. Sentiment extremes where everywhere you looked, even on Twitter. Images and a few comments below. Also some links to outside articles.
- A rally is imminent: All but one of the elements were in place by Friday morning (2008-10-10) and Friday’s intraday reversal might have been that last element. We won’t know until next week, but I did buy late in the day.
- Regardless of when the tradable rally develops, based on current information and thinking, we are likely at least halfway to the bear market low (in terms of time and price), but less than halfway through the recession.
- While sentiment reached an extreme Friday morning, it doesn’t mean it reached the extreme of this cycle.