Home » Most Recent Stories

AS STOCKS HIT HIGHS SENTIMENT SOARS

3 June 2009 by Cullen Roche 1 Comment

The bulls are back!  The AAII reading hit 43% this week as bearish investors slipped to just 25%.   This is the highest spread since early 2008.    This reading has routinely been a contrarian indicator during this bear market though the recent high readings have yet to be judged.  If the S&P 500 and more importantly, the banks, push their way through this important psychological level we could see the bull parade get a little out of control – to the point where you don’t want to be involved….

aaii1

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
  • Frederick

    I’m not positioned for it at all, but it feels like this market is going get seriously jiggy to the upside tomorrow no matter what the print is on the number. And, if it prints with a 4 handle it could turn into a rout to the upside(pretty amazing to be saying that). I like the level headed approach you take, and I know you’ve dipped a toe in the water to the short side here, but the snap back seems to want to go to the inverse of the sentiment extremes that the downtrade presented. Good luck tomorrow, thanks for the blog.

    06/04/2009 at 6:52 PM