Tuesday, December 18, 2012

Equities: One of Our Sentiment Indicators Has Hit Stall Speed

We use First Solar as a proxy for speculative money. In the three weeks since "One Indicator Says Get In There and Buy Stocks Now" the DJIA has moved from 12,870 to 13,344.70, the S&P from 1398 to1444.
Today for the first time in weeks FSLR has reversed from a high of $32.54 to actually going red for a few ticks. $32.01 down 2 cents last.

In the past the lead time ahead of the general market has ranged from 1 to 4 days.

This weakness may turn out to simply be the pause that refreshes but if it is an actual stall at the top of a climb I don't think the results will be as graceful as this little tour-de-force demonstration:

The plane rather caught the attention of the U.S. Air Force's top brass when it was first revealed.
Here's a longer version: