The percentage of bears moved below 19 last week, and that is getting awfully low. Odds favor a correction once we are done with end of quarter noise, although the percentage of bulls has not reached the peak of 2006. We are not in true bullish froth yet, but bears are definitely getting scarce. However, as you can see on the bear chart, the 2003 rally reached the same percentage low around June/July but the rally continued while bear sentiment rose. No one ever said it was easy. The prudent course is to avoid committing too much to the long side, but an all out short signal would have higher odds if we had more bulls. Another reason to day trade this mess and keep a cash reserve. Let price decide.
This entry was posted
on Sunday, June 24, 2007 at 6/24/2007 02:09:00 PM.
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