Thursday, January 27, 2011

Market Rising Despite Increased Bearishness

Yesterday's AAII survey showed more bears and we are also seeing higher levels of PUT buying. Unfortunately, this will make it difficult for a correction to occur in the short term. I am reducing my bearish posture.

I am still as long term bearish on this country and on equities as ever, but we have to heed the indicators.


whydibuy said...

The hell you say....

After 6 months of apocalyptic end of the world bearishness( and a 20-100% rise in most stocks ) our bomb bunker hermit is getting cabin fever. HE'S BULLISH!!!!

Egad, now I'm really worried, lol.

getyourselfconnected said...

Bullishness down, but still very high historc wise.

Eric said...

Just think of "bullishness" as meaning 'it looks like you can make money in the market by taking long positions -- in almost anything'. Then the high levels of it should make more sense, because the latter is pretty much true, and has been for a long time.

Re this comment.

BTW: heard yesterday that the projected $1.5t deficit means the federal govt will borrow 40c of every dollar it spends.