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Archive for December 18th, 2011

Are We Ready To Return To The High’s? – Justin Mamis Sentiment Cycle May Think So

Posted by lasertrader on December 18, 2011

Late last year I wrote a post about the Justin Mamis Sentiment Cycle. I won’t rewrite the details again but it can be read here . I like to use the S&P 500 / SPY charts as my proxy for the overall markets and like everyone else I have been sitting here trying to figure out where this market may be going over the next several weeks. Macro cross currents are dominating the news as well as our mindset keeping many out of the market, or leaning to the short side. As I was flipping my coin to make a guess I looked up at the wall over my desk and the chart of the Justin Mamis Sentiment Cyle caught my eye.

The similarity of the SPY/S&P 500 chart to the Mamis Cycle is uncanny. Lets first review the Justim Mamis Sentiment Cycle chart.

Now lets look at a chart of the SPY

The similarity is striking. Of course I’m not going to place a trade today on this, but if we break back over the green 200ma line again I think there is a very good chance we will revisit the previous highs quickly. I have seen this cycle play out enough times to feel there is a high probability of it working out once again. I am looking forward to seeing how this plays out.

Happy Holidays to all my fellow traders.

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