Has Negative Market Sentiment Gone Too Far?

Market sentiment was so negative of late. The Vix on MOnday went to 48. Highs not seen since the 2008 / 2009.

People every where keep asking me about the market. More so than at the bottom in 2008 / 2009. Everyone (Newstand guy, coffee guy, and the bagel guy, friends frm school) I talk to is worried.

As a contrarian, things rarely seem as scary in the equity markets as they do now. Maybe time to at least dip a toe in.

Wow

Well the last post was completely wrong. Just a bad call. The strength of the market in early summer (Nasdaq at 10 year highs) led me to believe that the stock market was looking ahead to much better times. Obviously the macro economic picture of bond market implosions in Europe followed by the debt fiasco in the US followed by the downgrade of the US credit rating has taken its toll. Full fledge bear market? Pretty close to there in the indices already.

at 2:30 PM today:

The Dow at 10,907, down 540

The Nasdaq at 2376 down 155

The S&P at 1126 down 73

Gold up 64 points