It's even worse

AAII latest sentiment survey result just came in: by Wed investors' sentiment is 48% bearish vs 21% bullish. Sounds familiar? Yes, I posted the result of the same survey a few weeks ago and recalled what was the result? 47% vs 25% (see here). So it is even worse than the last one. Actually it is not only the worst sentiment reading for the year, it is the worst in the past two years, I believe. No wonder we couldn't see any sustainable rally this week as each early morning highs were ended up with late day selloffs. Today. it reaches the climax by cutting 50 more points from S&P.  I'm pretty sure it is a sickening feeling for most people out there! But believe or not, technically it is a bullish move as the market is just cleaning the dead woods now and set up a clean launch board for a rally. You see for all the weeks, the market couldn't hold any gains but also didn't crash much, often just closed around where it was. With today's hard selloff, S&P daily chart has created a beautiful positive divergence, an important technical strength to support a more sustainable rally. Together with the extremely depressing sentiment with an extremely oversold condition by virtually all the indicators, this will be the perfect time to trade for long at least for the next two weeks or so. Maybe the market is just doing everything it can to mask its true intention but stealthily setting up for the year end rally.  


Last time after I posted the depressing sentiment result, S&P jumped 90 points almost immediately thereafter. Will the history repeat itself? I don't know but I bet it's intending to do so!


By the way, someone posted the following to vividly describe what people usually behavior when the market reaches the bottom:
 
《怎样识别股市底部特征》


股票群中：
特征一：群没人爱说话了。
特征二：说话的人言语中带有暴力倾向。比如我这种准绅士开始骂娘。
特征三：说话的人什么都谈，就是不谈股票。
特征四：没人看A股，都在看A片。
特征五：群主失踪。
如果出现上述3个以上的特征，可以大胆买进；如果以上5个特征同时出现，可以满仓操作。


Sounds joking but I think we start to see a lot similarity nowadays as far as I can see. I'm in many investment chat groups and indeed many groups are virtually dead as if no one is interested in talking about stocks anymore. This is a sharp difference from just a few months ago when people were very active in such groups about markets and stocks. Feels like we are indeed in a desperate depression state which is typically seen at the market bottom, not top.😀😀