These are the days I like to drop in here, big up or down days. On the big down days there is always a thread about the day, and big ups rarely if ever. I do not see anything wrong with that because in general this is a very bearish blog, which is fine. It is becoming an interesting study for me in sentiment. This is one of the most bearish places to study sentiment, so when the most bearish group gets the most bearish, that is an all out buy signal. Of course, the opposite would be true of a sell signal, the most bullish group getting excessively bullish. Excessive sentiment by the general public in either direction should be faded, the trick of course is knowing exactly when to do it.
I suspect the same thing will be true with housing, when the low is made I would wager that the general sentiment in here will be at it’s most negative level ever. I do not know how to quantify that, but I think it will just be obvious when it happens.
