Bottom line
- A positive environment favors becoming aggressive on signs of excessive pessimism.
Market environment (More info) Positives Negatives 1. Price pattern (barely) 1. % of Stocks in Correction 2. Moving averages 2. Net New Highs / Lows 3. McClellan Summation 4. % Stocks > 200-Day Sentiment / Breadth / Other Positives Negatives 1. Big up volume 1. Confidence high and declining 2. Surging small-caps 2. Too much options speculation 3. Surging tech stocks 3. Equities high vs GDP, Assets 4. Mar-May thrusts, recoveries 4. IPO market too hot 5. Excess liquidity is high Other Sectors and Assets Positives Negatives 1. Energy (here, here, and here) 1. Skewed tech (here and here) 2. Dollar test