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THE PYSCHOLOGICAL ROLLERCOASTER

13 November 2009 by Cullen Roche 1 Comment

The latest data from the AAII shows just how confused investors are regarding the current market environment and whether the recovery is real.  Just 10 days ago the market was in the middle of a minor 6% decline and it appeared as though earnings were largely priced in and that economic data was beginning to disappoint.  Markets tanked nearly 3% the day before Halloween as comments from Carl Icahn and Wilbur Ross spooked the market.  Same store sales compounded the fears.  Investor sentiment tanked to it lowest level since the March 8th low.  A few earnings reports and economic reports later and the market has rebounded over 7% and psychology  skyrocketed.   Although we’re not quite at a psychological extreme this uncertainty is likely to persist and paying close attention to the psychological extremes will likely continue to reward investors as the economy continues to confound investors.

AAII

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Comments
  • Sellputs

    Great article…. I to am very confused with this market. Me being a day trader im in this crap show everyday and let me tell you it is not getting easier.. did i catch this 60% rally. heck no.. did any traders i know.. not really…

    11/13/2009 at 6:11 AM