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I agree that you have to look at your charts and trade what you see. You can't
follow one man's opinion, you must do your own work.
However, when one of the biggest bulls on the Street turns bearish, the
lemming money managers struggling to beat the S&P are going to take notice. If
Abby Cohen turned bearish you can bet the market would decline because Goldman
Sachs controls a lot of money and the clients would sell as would other money
managers once they heard of the sell signal. It's the herd mentality.
It's our job as technicians to see through the forest to find the
opportunities. When we get a high TRIN reading and overly bearish $ weighted
put/call like yesterday, it tells me that the money managers have capitulated,
at least for the short term.
Howard
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