Saturday, September 22, 2007

HOW QUICKLY INVESTORS WENT FROM VERY BEARISH TO WILDLY BULLISH

Below is a chart with the Rate of Change applied to bullish sentiment.

You will notice that investors went from very bearish to wildly bullish at the fastest pace in
over 4 1/2 years.

This to me represents a lack of conviction on both sides of the market, which thus translates into uncertainty and we all know how much the market hates uncertainty.

This phenomenon does not bode well for a market that would continue to rally.


2 comments: