Friday 22 April 2011

Extreme Sentiment - Set Up for an EVENT

We can see sentiment extremes via CTFC data in the below -

CRB Index - bullish sentiment has passed 2008 peak
Index is still below 2008 peak
This is a set up for a major crash

Hedge funds are extremely bullish AUD.
This is a sign to be alert.
They are a crowd and a herd.
We all know how it end  - in tears.
It is time to stay away from this market or go short.

USD - super bearish sentiment noted here
Hedge funds again betting on collapse of USD.
Time to either go long or stay away from this market.

Hedge funds are super bullish on oil as of now.
Even more than they were in 2008 peak at 147.
Time to short oil or stay away from this market.


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