Plenty of cash on the sidelines?

I’d like to draw your attention to a chart posted by www.theshortsideoflong.blogspot.ca. This blog is run by a young investor named Tiho who, while operating with what may be an overly bearish bias to his investment opinions, still seems to put forth some keen observations. I’ll quote Tiho’s observations regarding his chart this week:

“In their latest monthly survey, retail investors increased their equity and bond exposure, while decreasing their cash levels. Variety of investors have used the “plenty of cash on the sidelines” phrase over the last few quarters, however the survey shows that cash levels remain extremely low. At present, there have been no major catalysts to trigger a sell off and force retail investors to rise cash levels (like in 08).”

In last Friday’s MarketCall tonight appearance, I presented a few sentiment charts from www.sentimentrader.com

I’m travelling this week and likely wont be able to post my usual Thursday sector blog. But I’ll be back next week on schedule for the Monday macro call.

2 Comments

  • THE GOOD:

    “DOW THEORY AFFIRMS THE BULL MARKET: DOW TRANSPORTS AND DOW INDUSTRIALS MOVE TO NEW HIGHS”
    “60-MINUTE POINT&FIGURE CHART SHOWS CLEAR SUPPORT FOR S&P500 (AT 1540)”

    7 MAY 2013 (STOCKCHARTS)

    THE BAD:

    “PERCENTAGE OF S&P500 ABOVE THEIR 200-DAY REACHES EXTREME”

    10 MAY 2013 (STOCKCHARTS)

    THE UGLY:
    “INFLATION EXPECTATIONS HAVE SURGED UNDER QE PROGRAMS (QE1,QE2 AND QE TWIST). RECENT DECLINES IN INFLATION EXPECTATIONS ARE PRESENTING THE FIRST DISCONNECT/DIVERGENCE FROM EQUITY MARKET PRICES IN OVER 10 YEARS. THIS DOES NOT BODE WELL FOR EQUITY PRICES”(EQUITY CLOCK, 9 MAY 2013)

    I WOULD NOT BUY BONDS TODAY (TLT, IEF AND SHY). BETTER TO WAIT FOR A BETTER ENTRY POINT, DON’T YOU THINK?

    Reply
    • Absolutely! I am just back from a vacation to see TLT is off–coming down to support, may be time to buy soon–I dont have a postion yet.

      Reply

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