ETF Prophet

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Mr. Ice

The major indices didn’t make much progress this week but they sure held up extremely well. Volatility took a few brief spikes this week, but all dips are met with eager buyers.  Even lagging Apple is picking up, helping to power the lagging NASDAQ higher.  After 28 days of uptrending and CNBC chanting DOW 14000,  sentiment continues to grow more bullish to the point where complacency is now a red flag for the market.  Extreme bullish sentiment is not the best timing indicator, as bullish sentiment can persist for weeks before the market tops.

2 Responses to “Charging Bulls”

  1. This is an Interesting site with aggressive market neutral strategies…very good trading advice.

  2. Translation: The average individual investor is most bullish at market tops and most bearish at market bottoms. The survey from the American Association of Individual Investors is often cited as a barometer for investor sentiment. In theory, excessively bullish sentiment warns of a market top, while excessively bearish sentiment warns of a market bottom.