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 3. McClellan Summation 4. % Stocks > 200-Day 5. Net New Highs / Lows Sentiment / Breadth / Other Positives Negatives 1. Confidence rising 1. Too much options speculation 2. Big up volume 2. Equities high vs GDP, Assets 3. Surging small-caps 3. IPO market too hot 4. Surging tech stocks 5. Mar-May thrusts, recoveries 6. Hedgers net long 7. Excess liquidity is high Other Sectors and Assets Positives Negatives 1. Energy (here and here) 1. Skewed tech (here and here) 2. Dollar test