When you start digging into the sentiment numbers, you’ll find that the NYSE Bullish Percent Index increased about 2% today. But the current reading is still in oversold territory at 17%. (“normal” market activity is usually found between 30% and 70%).
What’s even more telling is that the NYSE Hi-Lo Index is 0.80%. Let me say that again, phonetically: ZEE-ROW POYNT ATE PER-SENT. Simply put, there are over 99 times more stocks making new lows than new highs. Nasdaq? Same thing. The OTC Hi-Lo is also 0.80%.
0.80%
Folks, would you agree with me that this condition in the market might possibly be somewhat of an extreme? Perhaps, just a tad? Uh, yeah.
While it is possible for things to be like this for a period of time, the current situation suggests that buying at these levels puts an immutable law on your side: the law of averages and reversion to the mean. The odds are on your side, my friends.
Time is on your side.
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