Last Time Bullishness Hit These Levels...

By: Chris Ciovacco | Mon, Jan 23, 2012
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Zero Hedge posted a TrimTabs video on January 20. TrimTabs reports on supply and demand of shares of stock and money available for investment. Some interesting highlights from the video:

  1. The VIX recently hit its lowest level since July 2011.
  2. Hedge fund S&P 500 optimism is the highest since July 2011.
  3. Put/Call ratios five day average was recently the lowest since July 2011.

Extreme levels of optimism can be a contrary indicator for asset prices. A logical question is how did July 2011 investors make out?

stock market sentiment

A few more nuggets from the video - newsletter writers have the highest level of optimism since April 2011. How did that work out? Not well - the 2011 market peak was made on April 28. Mutual fund managers are more bullish on stocks today than anytime since April 2010; the S&P 500 dropped 17% from the April 2010 highs to the July 2010 lows. The full video from TrimTabs is below - notice the reference to what is driving the markets at the 2:43 mark (hint: money printing).

 

 


 

Chris Ciovacco

Author: Chris Ciovacco

Chris Ciovacco
Ciovacco Capital Management

Chris Ciovacco

Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC. More on the web at www.ciovaccocapital.com.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/