Barron’s Cover Indicator?

How ever shall we interpret this?

In this week’s Barron’s, the cover artwork is super-bearish along with the title — Splat! — however, that sentiment as a contrary indicator may be belied by the text/article:

“Will the Dow fall to 5000? We don’t think so. Here’s why.”

This is a Barron’s pattern — the illustration reflects recent market action (and therefore sentiment) while the copy “spins it forward.”

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Some have contended Barron’s — like the Economist — is too narrow in scope and readership for good contra-cover analysis.

And as Mike Santoli has pointed out in the past, fading all the doomsday covers the Economist has had in the past year would have hurt.

On a related note, recent AAII sentiment readings are literally off the charts (was 1990 really so bad?) :

via Bespoke

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Source:
Ouch! That Hurt
ANDREW BARY
BARRON’S SATURDAY, MARCH 7, 2009
http://online.barrons.com/article/SB123638337231157995.html

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