Investors Intelligence Issues "New Major Warning" For Stocks

With the spread between bullish and bearish investors surging to its highest since the first week of 2017 (and bears at their lowest since March 1st), Investors Intelligence sees more than a little complacency spreading into financial markets.


In their latest note, II notes that newsletter writers classified as bulls rose to 60.2% this week - the first time above 60% since March 1 (and up from 57.8% last week). This has triggered Investors Intelligence to warn:

"This is a new major warning calling for defensive measures to protect profits, renewing the same signal from earlier this year.



In the historical comparison, the bulls ended Jan-1987 at 64.6% and then returned to 60.8% that Aug after further market highs" ahead of October crash.

Still, it's probably different this time.


GUS100CORRINA Rick Cerone Wed, 07/26/2017 - 15:44 Permalink

1987 - 2017 - 30 YEARSIt is time for the "KNOW IT ALL" Milllennials to experience what the Baby Boombers experienced in 1987, the YEAR that the PPT was formed under President Reagan.GOOD LUCK MILLENNIALS!! ENJOY THE RIDE!!! PLEASE, PLEASE STAY AWAY FROM OPEN WINDOWS IN TALL BUILDINGS!!!

In reply to by Rick Cerone

lester1 Wed, 07/26/2017 - 15:37 Permalink

Hahahahaha hahahahaGeez, how many times do we read doom and gloom only for the Federal Reserve's PPT to buy up stocks and keep the market propped up?No crash. Yellen said so.Hey Peter Schiff... Yea you... We know your lurking here. Remember August 24, 2015 when the PPT reversed a -500 point drop in just 15 minutes??

tgatliff Wed, 07/26/2017 - 15:42 Permalink

Was central banks also buying stocks in 1987?  Its laughable that some people still believe that there is a parrallel to today's world...

PeeramidIdeologies Wed, 07/26/2017 - 15:53 Permalink

She's like a scuba diving skydiver, a long ways off the ground, yet a long ways from a breathe of fresh air.

I think we are very close to an inflection point where the market will have to engage in a significant pull back, or unveil a new narrative to continue upward. Until then? Range bound.

Iconoclast421 Wed, 07/26/2017 - 16:01 Permalink

Notice that big green bar on the very left of the chart, right before the first big yuge rally of 2017. These guys are just selling doom to get people to go short so they can get their asses handed to em and feed the longs.

Jtrillian Wed, 07/26/2017 - 16:04 Permalink

"Not in our lifetime" - Janet YellenIt IS different this time.  Central banks are THE market makers.  Let that sink in. There are no markets... only the central banks.  If markets tank, it will be a time of their choosing. 

turkey george palmer Wed, 07/26/2017 - 16:05 Permalink

The  bubble has many supporters that are relatively interconnected so that if one fails the rest can't help but fail.There's no entity large enough to stop a collapse. Buying debt and ETFS in a market collapse will bankrupt the fed. That's the plan all along. Our nation has run headlong to the brink of extinction band we will be ruled by globalists. Trump be dammed he said just carving out a slice for himself 

stormsailor Wed, 07/26/2017 - 18:05 Permalink

you would have to be crazy-brave with nerves of steel to short into this. lose your mind and all your money. hint: when was the last time markets actually worked on fundamentals and made sense? 2007.