Thursday
Oct212010
Bullish Sentiment Nears 50%
Thursday, October 21, 2010 at 10:37AM Today's release of weekly sentiment figures from the American Association of Individual Investors (AAII) showed that bullish sentiment rose close to 50%, which is the highest level since early September. Prior to that, you have to go all the way back to the Summer of 2009 to find a bullish reading as high as it is now.
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Reader Comments (1)
This level of bullish sentiment is one of the factors to go short the market; another is your overbought report.
As I wrote my article 10-21-2010 article, All Most All Manifest Bearish Harami, I sensed we have reached "the maximum creep", that is the maximum "deteriorating internal (volume, breadth, momentum) strength" which often leads to sharper than normal pullbacks.
I wrote "The ratio of the small cap value shares, RZV, relative to the small cap growth shares, RZG, ... RZV:RZG ... rose to what I call a “saddle up, lock and load” position, that is a pull the trigger all the way back position, suggesting that that the currency-volatile small cap value shares are "fully loaded to explode massively lower"; all I can say is "get ready for some investment shock and awe".