Sentiment Gets Dinged

So many sentiment gauges have not only been ringing bells, they have taken sledge hammers to them and cracked them. Investors Intelligence, the spiking AAII, the all-in short volatility trade, epic levels of brand new discount brokerage (i.e. retail) accounts and on and on it goes. So that is this post’s caveat; sentiment has come to bull ending levels.

But with sentiment those levels are conditions, not directives. In the event this is not the end of the bull or is a prelude to a new bear’s first bounce, this (from Sentimentrader)…

smart money, dumb money

The little hiccup in the stock market was starting to fix sentiment on a short-term basis, even before this morning’s sea of red in pre-market. All the more reason I’d like to short strategic areas only and if applicable, wait for setups on the entire pig.


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