Aug 9, 2010

Short-term: 3 yellow, 1 red – tending yellow
Intermediate-term: 1 green, 3 yellow – tending yellow
Stock targets: 64% swimming, 24% neutral, 13% sinking

Short-term is warning of possible pullback. % swimming isn’t overbullish enough for me to say this is the top here. But I think we’re within a week or two of a short-term top. Stock market is now predicting a pretty good recovery from here – bond market is predicting that there is no improvement from here. One of them is dead wrong.