Wednesday, September 22, 2010

Is your head in the sand?

The AAII sentiment index is reaching highs seen in three previous market crashes. This is bad news, especially when coupled with bearish technicals. When this sentiment indicator gets this overheated, the markets tend to peak. Just looking at the below chart, we can see that huge drops followed the peaks in bullish sentiment.

AAII Investors Sentiment Survey

AAII Sentiment IndexAAII Sentiment % Bearish Index

There is no good reason for the current bullish sentiment. These levels of bullishness always end badly. Protect yourself or pay the consequence. We can help! 

Eduard Hamamjian

GeaSphere LLC

877-351-4900

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