Blindfoldedmonkey: GREEN BARS EVERYWHERE

Friday 27 December 2013

GREEN BARS EVERYWHERE

Thursday continued the rally on US markets and in Japan. This morning all the European markets have opened with gap. The optimism is all around us. This is a real Xmas rally. Behind the green day in US might be the US the weekly jobless claim which fell by 42k to 338,000, that is surprisingly good data.

Historically, the markets might do abnormally high returns in the trading days around Xmas holidays. Why? First, the people are more emotional and more optimistic in these days than usually. Second, the funds try to maximize the tax benefits before the closure of the year. Third, most of the professional traders are on vacation and they are mostly on the seller side of the market.

Most of us are getting greedy:


But, what happens if there is nobody on the short side? Wast majority of American small investors are in euphoria. The bullish sentiment between them is the highest since 2007, the bearish are the lowest since 1987. The bull-bear spread has never been broader than now.

The change since last week is amazing:
  • Bullish: +7.6
  • Neutral: -1.1
  • Bearish: -6.5


Datas reported by AAII: http://www.aaii.com/sentimentsurvey

Take a look at our Swiss fund and begin to invest with us!

The BFM Assets Team.

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