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Santoli’s The Trader

Posted By Barry Ritholtz On March 18, 2006 @ 7:30 am In Markets,Psychology,Trading | Comments Disabled

A few interesting observartions in Mike Santoli’s Trader [1] column in Barron’s. Please note that these are decidely contrarian negatives in the face of a rallying market making new highs:

"Charles Schwab (SCHW) last week reported that February was among the heaviest months for client trading since the bubble burst in 2000; the firm took in a net $10.6 billion in assets, a big haul. Some of this is market-share gain, but it fits with other indicators of an awakened investing public.

In the short term, if inflows continue, this money will keep the market firm. But the public’s lack of interest in stocks wasn’t an altogether bad thing, given the timeless notion that no market flops without first hooking the little guy."

Further, as we have observed prior [2], the breadth has been only fair for a market making 5 year highs. Barron’s [1] quotes Larry Berman, technical strategist at CIBC World Markets, who noted: "The number of stocks (in the S&P 500) that have made new 52-week highs in the past week was 104, which is notably lower than the 128 that we saw at the January ’06 and July ’05 peaks."

Lastly, despite the nice move off the lows over the past 2 weeks, the Market Sentiment gauge from Citibank ("Panic /Euphoria") is almost out of the panic zone (wtf?)



Panic [3]


C’mon Tobias, its time to adjust those parameters! [4] Whatcha waitin for? A crash or sumpthin?


Stocks Race to New Bull-Market Highs [1]
Barron’s, SATURDAY, MARCH 18, 2006 6:15 a.m. EST   

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2006/03/santolis-the-trader/

URLs in this post:

[1] Mike Santoli’s Trader: http://online.barrons.com/article/SB114263811850701808.html

[2] observed prior: http://bigpicture.typepad.com/comments/2006/03/bad_moon_arisin.html

[3] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/panic.png

[4] adjust those parameters!: http://bigpicture.typepad.com/comments/2006/02/a_year_of_panic.html

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