Market Wrap -- Week Ending June 20, 2003

I've decided to quit listing the Strong Nasdaq and NYSE Stocks every week. It was a pain to type in so many names; if you're interested in seeing the list, just email me. Instead of doing the Strong Stock schtick, I'm just going to post up-to-date charts of the Nasdaq 100, S&P 500, Volatility Index, and the Equity-Only Put/Call Ratio.

I use the Volatility Index and the Equity-Only Put/Call Ratio as sentiment indicators to figure out when the market is "low" and stocks are attractively priced. In 2002 there were fourteen weeks where the sentiment was extraordinarily poor. (In 2001 there were only four such weeks.) All these times offered great opportunites to pick up shares on the cheap... you just had to be paying attention.

So far in 2003 there have been three times where pessimism predominated: the weeks ending January 31, February 14, and March 14. Those were all great times to buy some shares at decent prices. The sentiment is very positive now, so clearly prices are high and you would not want to be a buyer here.

Always remember: You gotta buy 'em when they ain't.

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