It never ceases to amaze me as I watch investors turn bearish lower and bullish higher. I'm like a kid watching the same magic trick over and over and am still mesmerized. Today's low in the S&P 500 was over 70 points lower than the high last Tuesday. Last Tuesday everyone was bullish because Ben Bernanke was willing to do more. Today everyone is bearish because Europe is a mess. Ben Bernanke is still willing to do more today and Europe was a mess a week ago. Nothing has changed but the mood of investors.
The good news is that we are now only two days away from being oversold. This mood swing towards bearishness will allow for a new mood swing towards bullishness. I used today's weakness to increase my net long position and am growing more constructive. Have a good night.