S&P500 vs AAII Bullish Index
My pal Mike Panzner sends along this chart showing that we are getting to an extreme in sentiment:
Chart courtesy of Mike Panzner's Armageddonomics
>
That suggests a bounce, and I cannot say I disagree. Where I may be more circumspect then some of my more bullish brethren is what you should do with that bounce . . .
>
UPDATE: July 11, 2008 1:04pm
Here's the UoM Sentiment read:
~~~
Friday, July 11, 2008 | 11:00 AM | Permalink
| Comments (25)
| TrackBack (0)
add to de.li.cious | 
digg this! | 
add to technorati | 
email this post
TrackBack
TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e55395b4d48833
Listed below are links to weblogs that reference S&P500 vs AAII Bullish Index:
Comments
This indicator has failed the last couple of times, unless your horizon is days, not weeks. It also is a survey. I use Total Put/Call as a sentiment indicator based on actual money being put down. When the 10 day MA gets near 1.25, you can start covering shorts, IMO. Could take a few weeks. Don't go long however...just cover temporarily.
Posted by: Steve Barry | Jul 11, 2008 11:09:29 AM
The comments to this entry are closed.
