Just a couple of weeks ago, these market timers were on average recommending that their clients allocate 80% of their Nasdaq-oriented portfolios to stocks. That was the highest level for this average since 2000, and was a contrarian warning signal that trouble laid directly ahead.
Today, in contrast, the comparable average recommended exposure level is minus 45% (as measured by the Hulbert Nasdaq Newsletter Sentiment Index, or HNNSI). This negative level for the HNNSI means that these market timers on average are recommending that their clients allocate nearly half their Nasdaq-oriented portfolios to going short -- an aggressive bet that the market will continue declining.Market timers are uber bearish as seen in the above article. As an aside, I have been hearing recommendations to buy SDS left and right recently. I thought these leveraged ETFs were put to bed already after the losses they inflicted.
-Mark Hulbert, Marketwatch