- The amount of money in bullish Rydex funds versus bearish is within spitting distance of an all time record.
- Hulbert Nasdaq market timers are recommending a 64.7% net long. They have gotten as high as the mid to high 70's but is clearly in the high end of bullishness
- Last week we had a 52 week high in call buying at both the ISE and CBOE
- The Investors Intelligence bulls are above 54%, which is approaching the danger zone. Unfortunately the bears are still above 24%. The best signal is when the bears are below 20%.
We have seen numerous rallies in recent years where the extreme bullishness did not matter for a long time. However, eventually the extreme bullishness did matter and all the gains were subsequently taken away. If we are not in extreme bullish territory than we are on the precipice.