I am sure those who were buying the "Kool-aid" at the market highs feel that way, but the numbers tell a different story.
Several warning signs are gathering steam...
The "smart money" indicator is at its most extreme degree of selling since November, 2010.
The technicals break with the news!
This is a headwind we shouldn't ignore.
The 'cash on the sidelines' myth has more lives than a cat. No matter how often the logical fallacy underlying it is pointed out, Wall Street continues to propagate it. Nevertheless, money and credit are of course extremely important factors in the analysis of asset markets. The below provides what are hopefully a few useful pointers as to which data one should keep an eye on in this context.
Crisis was averted. Or was it just put off for another day?
In essence, you need to be selling strength.
The "Mixed Signals" from 2 weeks ago, which morphed into last week's clues, must mean something this week as the markets had their worse day in 7 months on Friday.
At these levels of bullish sentiment, fewer bulls isn't a contrarian signal but a sign that there are fewer investors willing to push the market higher.
Folks, I wish I had the answers for you this week.
That's the conundrum investors must face if they want in to this market now.
We are beginning to see signs of a market top.
The biggest bubble is in investors' belief that there is no risk.
There are over 4 times as many leveraged bulls as leveraged bears.