The dumbest of money (as quantified by Sentimentrader.com)
is carrying the S&P 500 further into our upside target zone.
Sentiment is not a timing tool, but it is a tool that when aligned a
certain way, is a prerequisite for a correction. Dumb money was very
bullish as 2011 began and very bearish as the current rally began. Form
your own conclusions.
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Fair point, tho based on the chart didnt the 'smart' money completely miss the big rally in 2009? While dumbo's worldwide reaped the benefits
ReplyDeletePretty much, and that's why it is not a timing tool and I am certainly not calling for an Armageddon type event. Just a correction, and the dumb money is usually going to be over bullish as a correction arrives - eventually.
ReplyDeleteYes I agree, certainly feels like steam is running out of this rally and a pullback is due.
ReplyDeleteWhere do you see things moving once a correction has taken place. Moving to new highs?
By the way I love your site...nice to see someone with an independent brain and different thoughts from the crowd.