http://www.bespokeinvest.com/thinkbig/2011/4/6/large-drops-in-bearish-sentiment.html
Extract from the link above
"Talk about hopping on the bandwagon. In the latest weekly survey of investment advisor sentiment from Investors Intelligence, bears declined by 32% from 23.1% down to 15.7%. Going back to 1975, there have now been just 16 other periods where bearish sentiment declined by more than 30% in a single week. "
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The crowd is getting sucked on the long side of the trade.
It is better to stay out than be long at this point in time.
An extreme like this suggests that the market is ripe for a reversal.
Extract from the link above
"Talk about hopping on the bandwagon. In the latest weekly survey of investment advisor sentiment from Investors Intelligence, bears declined by 32% from 23.1% down to 15.7%. Going back to 1975, there have now been just 16 other periods where bearish sentiment declined by more than 30% in a single week. "
--------
The crowd is getting sucked on the long side of the trade.
It is better to stay out than be long at this point in time.
An extreme like this suggests that the market is ripe for a reversal.
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