The Missing Piece of the Puzzle
The decline has now lasted for six trading days in a row. Despite this, I see folks glomming on to the fact that the American Association of Individual Investors survey chimed in this week with 30% bulls, as if it constitutes proof that sentiment is horrible.
As longtime readers will know, it is my view that the AAII readings are great sentiment indicators, but only when they are confirmed by other sentiment indicators. On their own, they don't tell us much. As I noted Thursday, the Investors Intelligence survey shows 45% bulls, so there is a disconnect. The put-call ratios have yet to zoom higher and show us real fear in the market. During each trading session, they climb only to fall back to neutral by the close....362 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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