STA MarketUpdate 8-2-10

Seattle Technical Advisors.com For daily commentary see SeattleTechnicalAdvisors.com Hit the Bid As of last Friday, the closing high for the July advance was printed on July 26 th , the date of the full moon (sheer lunacy). On Friday equities triggered a Carlson Confirmation sell- signal . We would advise readers to ‘hit the bid’ (sell equities). We still wouldn’t be surprised by a pop up on Monday but that should be looked upo n as a gift to get short equities. This week we are lowering our best-case scenario for an end to the bear market to 8,300 Dow and 880 S&P 500. Deflation Sightings Record lows were set in the 2-year treasury auction as well as the 30-year mortgage rate last week. Sentiment NYSE short interest saw a 1.2% decline over the past month. EPFR: Overall, investors pulled another $15.3 billion out of Money Market Funds last week taking year-to-date outflows back over the $450 billion mark, and redeemed a net $3.16 billion from equity funds. Investor's Intelligence : Bullish Percent 38.2, Bearish Percent 34.9. AAII: Bullish sentiment rose 7.8 percentage points to 40.0% in the latest AAII Sentiment Survey. The percentage of individual investors who expect stocks to rise over the next six months is at a six-week high. The historical average is 39%. Bearish sentiment, expectations that stock prices will fall over the next six weeks, fell 11.7 percentage points to 33.3%. This is a five-week low for bearish sentiment. July consumer confidence report: 9% of American households rate business conditions as being "good". When Lehman failed in September 2008, 13% believed business conditions were "good" When Bear Stearns failed in March of that year, the ranking was at 16%. In the wake of the 9-11 tragedy, it was 19%. Consumer confidence dipped in July again over worries about the jobs picture and over income prospects. The overall consumer confidence index slipped to 50.4 in July from an upwardly revised 54.3 in June (initially 52.9). Analysts projected July to print at 51.0. The Seattle Technical Advisors website is published as an informational service for subscribers, and it includes opinions as to buying, selling and holding various securities. However, the publishers of Seattle Technical Advisors are not investment advisers, and they do not provide investment advice or recommendation s directed to any particular subscriber or in view of the particular circumstances of any particular person. ANY REDISTRIBUTION of th e Seattle Technical Advi sors Market Update, without the written consent of the publishers of Seattle Technical Advisors, is PROHIBITED. Copying and/or electronic transmission of the Seattle Technical Advisors website or content is a violation of copyright law. Information provided by Seattle Technical Advisors is expressed in good faith but is not guaranteed. August 2nd, 2010 arket Update Hit the Bid Deflation Sightings Sentiment US Equities Dow Industrials S&P 500 Cycles Foreign Equities Nikkei FTSE/Xinhua25 US Treasuries TNX Currencies Dollar Euro Yen Commodities Crude Oil Gold

STA MarketUpdate 8-2-10

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