Thursday, August 26, 2010

General Updates

My opinion based on sentiment and retracement levels is that bonds are overbought on an intermediate to long term level. TLT has now retraced basically 61.8% of the decline off the 2008-2009 high.

The AAII survey today showed a very high level of pessimism toward stocks by individual investors - one of the lowest handful of readings in the last 5 years.

The major equity indexes formed bullish reversal candlesticks yesterday. The IWM and QQQQ made nice bullish engulfing patterns. I definitely expect a rally here, maybe even bigger than I was anticipating.

RIMM and STP look like attractive intermediate to longer term buys today. I have both of those.

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