Sentiment expresses the mood of society. When the mood of the country is positive, the stock market goes up. When the mood is negative, the market goes down. What is the sentiment today: unwinnable wars in Afghanistan and Iraq, millions out of work, huge deficits, environmental disaster in the Gulf, workers' pay and benefits being cut. With this kind of sentiment, can the stock market go up?
Krugman, an influential opinion maker writes in the NYTimes today about a Third Depression worse than anything experienced before. If sentiment does determine the trend of the market, it must surely be going down. But this is one man's opinion. Keep in mind that there is also a saying that "the market climbs a wall of worry." There is always an opposite opinion!
The stock market continued its downtrend today, although it was up for most of the day. The Dow, S&P, Nasdaq, and the Russell all ended down.
The markets remain in Wave 3 down.
I trade only indexes, not individual stocks.
No comments:
Post a Comment