- The sentiment indicators I look at are clearly at an extreme.
- There is a bubble bursting like in 2007 and 2000.
I changed my posture to net short about two weeks ago once sentiment was very clearly at an extreme and I have gotten nicked for about 15 points on the S&P 500. During the past few months some readers commented that my unwillingness to go short because of the calendar was simplistic. I would rather be simple and avoid losing money than sophisticated with large losses.