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Each week, WhisperNumber.com conducts a markets confidence survey. In our recent investor survey, the following markets gained "extreme" confidence readings. An under-confident or low percentage result indicates an oversold market where strength can be expected. An over-confident or high percentage result indicates an overbought market where weakness can be expected.

New Readings

First Trust Dow Jones Internet Index (NYSEARCA:FDN): Market confidence have been trending lower since mid-December. The most recent reading dropped to 0.0% (indicating no confidence in the market). This matches the 52 week low (the 52 week high is 10.0%). In 2012, we only had two extreme readings for the Internet index. Both were long, and both proved profitable. Our last extreme oversold reading occurred on August 27th. The oversold confidence trend ran through September 17th for a gain of +5.3%. The current reading indicates an oversold market with a potential for market strength moving forward.

iShares MSCI Brazil Index (NYSEARCA:EWZ): Market confidence survey readings for this region can be choppy. There is no definitive trend in the data, but the most recent reading is 1.6%. This is a new 52 week low (the 52 week high is 23.2%). In 2012, we only had one extreme reading for the index. Data indicated an oversold market (September 24th), but the EWZ moved against the expectation for a limited loss of 2.6%. The current reading indicates an oversold market with a potential for limited market strength moving forward.

Open Readings

Market Vectors Retail ETF (NYSEARCA:RTH): We've been seeing low confidence readings for the market over the past five weeks. On January 7th, confidence dropped to 0.0% (indicating no confidence in the market). This matched the 52 week low (the 52 week high is 7.0%). In 2012, we had five extreme readings for RTH. All were long, and all proved profitable. Our last extreme oversold reading came on November 5th, when RTH traded at 44.74. The oversold trend ran through December 10th with a very limited move of +0.6%. The current reading continues to indicate an oversold market with a potential for market strength.

iShares Barclays TIPS Bond (NYSEARCA:TIP): We've been seeing low confidence readings for the market over the past six weeks. On January 7th, confidence dropped to 0.0% (indicating no confidence in the market). This matched the 52 week low (the 52 week high is 10.9%). In 2012, we had eight extreme readings in the TIPS Bond market. Seven were long, and one was short. Seven out of the eight (88%) proved profitable. Our last extreme oversold reading came on November 19th, when TIP traded at 122.31. The oversold trend ran through December 31st, but the market remained neutral. The current reading remains at 0.0%, and continues to indicate an oversold market with a potential for market strength.

PowerShares DB Precious Metals (NYSEARCA:DBP): This reading has stayed below 22% for the past six weeks, ranging between 10.5% and 21.4%. The January 7th reading dropped to 1.6% (indicating limited confidence in the market). This was also a new 52 week low and oversold market reading (the 52 week high is 32.0%). In 2012, we had six extreme readings in the gold and precious metals market. Five were long, and one was short (the short reading was gained in mid-November). All proved profitable. Our last extreme oversold reading came on July 23rd, when DBP traded at 53.71. The oversold trend ran through September 4th with a very strong gain of +9.3%. The current reading continues to indicate an oversold market with a potential for market strength.

iShares MSCI Pacific ex-Japan (NYSEARCA:EPP): We gauge the China market with two different survey responses. One is specific to the region, the other is ETF-specific. Both need to see extreme readings before we expect to see market strength/weakness. Market confidence has been trending higher since early December. On January 7th, the confidence reading hit 18% (indicating strong confidence in the market). This was also a new 52 week high and overbought market reading (the 52 week low is 0.0%). We have not seen an extreme reading in this market since February 2011. The current reading continues to indicate an overbought market with a potential for market weakness.

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WhisperNumber.com conducts weekly surveys of its registered userbase of individual investors. We've been conducting these surveys since 2002. Each survey, on average, receives over 1,100 responses from our participants.

The premise of each question: How confident are you about the future of the market? This question is asked of the general market (Dow, S&P), eleven market sectors, 12 Exchange Traded Funds, 10 Global Regions, and three Bonds markets.

We look to see where the "herd" is headed, and take the opposite route. The "herd" (in this case, actual investors) is usually chasing a market higher or lower. In some cases, chasing the market does yield positive results, but in most cases, chasing a market ends up in losses. Analysis of our data concluded we were taking a snapshot of sentiment that indicated the opposite of actual market moves. Thus, it required contrarian interpretation in order to be accurate.

The responses collected from these surveys are presented in the Market Confidence Report. The responses are percentage-based, but also include a simple overbought, oversold, or neutral tag, along with basic commentary. An over-confident or high percentage result indicates an overbought market where weakness can be expected. An under-confident or low percentage result indicates an oversold market where strength can be expected.

To determine the oversold, overbought, and neutral ranges, we've analyzed the past 52 weeks' high and low confidence readings for a given market, with an analysis of historical price movement to determine cut-off points.

All trading involves risk and the information presented is not intended to be a recommendation of any kind.

Source: ETF Market Confidence Extremes: Latest Investor Survey Results