- Survey Says- All sentiment surveys are pointing to a bullish sentiment extreme. My favorite survey for intermediate term sentiment is the Investors Intelligence survey. The number of bulls are at a new high for the bull market and the bears are at 21%. I prefer it when the bears are under 20% but this is close enough.
- Rydex- Rydex traders are positioned about as bullishly as they get.
- Put/Call Ratios- The two put/call ratios that have worked best in the past year have fired off sell signals.
Sentiment Is Extreme
There are three areas that I look at to gauge sentiment and all three are singing the same tune.