WHERE ARE THE BULLS?

There is a very strange momentum in the sentiment. Against the fact that all US indices are on records or very close to that levels the retail investors are super pessimistic. That seems a paradox. Most of them don’t believe to their eyes, and don’t believe the market is really bullish. The AAII sentiment survey issued last week and show the anxiety:

The Bulls vs. Bear ratio is far below the meridian of 39 – now it is only 29,63%. What happens normally at these days. Big rally, just take a look at the chart below. The top of the market always comes right after when the ratio is in a lower territory.

This can be a good short term contrarian indicator. Because this lack of optimism could push higher the market.

The BFM Assets Team.