Thursday, October 6, 2011

Dax sentiment week 40

Contrarians push for a stock market rally

Selling has decreased continuously as can be seen from the above graph. It is still expected that buying would wake up investors interest. Soon we could be in a good phase of optimism. The law of inertia usually brings the green and the red line together and that is about to happen sooner or later. When we see green buying indicator increasing, the index could surge strongly for a while.

The individual stocks are still broadly performing better than the index. Usually this has marked the short term market bottoms.
 Yesterday, we didn't see any 52-week lows, which is a good sign.