Dorsey, Wright Client Sentiment Survey - 12/3/10

December 3, 2010

Here we have the next round of the Dorsey, Wright Sentiment Survey, the first third-party sentiment poll.

As you know, when individuals self-report, they are always taller and more beautiful than when outside observers report their perceptions! Instead of asking individual investors to self-report whether they are bullish or bearish, we’d like financial advisors to weigh in and report on the actual behavior of clients. It’s two simple questions and will take no more than 20 seconds of your time. We’ll construct indicators from the data and report the results regularly on our blog–but we need your help to get a large statistical sample!

Click here to take Dorsey, Wright’s Client Sentiment Survey.

Contribute to the greater good! It’s painless, we promise.

 

Leave a Comment » | Investor Behavior, Markets, Sentiment | Permalink
Posted by JP Lee

One Factor That Price Did NOT Miss

December 3, 2010

The Wall Street Journal ran an article today about Chinese buying in gold. On the down low, it now appears that China quietly imported 209.7 metric tons of gold in the last ten months. The intro to the article states:

Gold’s record rally has been attributed to everything from worries about inflation, the dollar and the emergence of exchange-traded funds. One big factor many may have missed: huge buying from China.

It goes on to say how surprised analysts were when the disclosure was made by the official Chinese news agency, Xinhua:

That surpassed purchases made by ETFs and surprised analysts, who until now had no clear insight into the size of China’s buying.

[My emphasis.] In other words, gold market analysts, who leave no stone unturned, had no idea that Chinese purchases were larger than purchases made by the ETFs and were up 500% from last year! The nice thing about supply and demand is that it doesn’t tend to miss things like that. If you want clear insight into supply and demand, sometimes it’s helpful to just look at a chart.

Source: Yahoo! Finance (click to enlarge)

Relative strength runs on price because price is a clear reflection of supply and demand. Unless someone repeals the law of supply and demand, it’s probably going to continue to work as well as it has for the last 80 years.

Disclosure: DGL, GLD, IAU, and other precious metals ETFs are current holdings in various Dorsey, Wright managed products.

Leave a Comment » | Markets, Thought Process | Permalink
Posted by Mike Moody

Sector and Capitalization Performance

December 3, 2010

The chart below shows performance of US sectors and capitalizations over the trailing 12, 6, and 1 month(s). Relative strength strategies buy securities that have strong intermediate-term relative strength and hold them as long as they remain strong. Performance updated through 12/2/2010.

 

 

Leave a Comment » | Markets | Permalink
Posted by Andy Hyer