Bullish Sentiment Swings Wildly Higher
Bullish sentiment is up, just in time for a good correction. The latest poll from the American Association of Individual Investors reportedly showed that the bullish sentiment from investors had risen to 48.97% from 38.49%. Bearish sentiment was said to…
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Bullish sentiment is up, just in time for a good correction. The latest poll from the American Association of Individual Investors reportedly showed that the bullish sentiment from investors had risen to 48.97% from 38.49%. Bearish sentiment was said to be down to only 21.58% from 29.34%. Even the Neutral crowd fell to 29.45% from 32.18% in the past week.
As a hint, the “smart money” uses sentiment as a barometer for peaks and troughs in trading terms. If everyone is bullish, the thought is that all or most of the buying has taken place.
A move up to what is still less than 50% bullish might not seem excessive, but a 10-point gain is far from normal.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
