Still Expecting A Pullback

Yesterday we saw a continuation of the heavy call buying. This morning we are seeing the American Association of Individual Investor survey come in at 45% bulls and 25% bears. That matches the largest spread between bears and bulls this year, which was seen in early January right before the nearly 10% correction.

The positives are that the 10 day moving averages of the put/call ratios will take a few more days to reach a bullish extreme and that we are approaching option expiration. Corrections have tended to be delayed until after option expiration.

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