The latest readings from AAII sentiment show once again bears outnumbering bulls. 41%are bears and only 35% are bulls. Also, there was a spike in cash flow into the rydex bear funds meaning rydex traders shorted the rally yesterday. As a result of this, I have to give the bulls the benefit of the doubt here. Every time I've seen the above happen markets found a way to grind higher in time. Not everything is lining up bullishly here (I mentioned the very low put call ratio before) but one thing that I won't be doing is playing the short side because time and time again anytime I've noted the above behavior the market ended up being higher in the days and weeks again...it wasn't always a straight line up but it was up nonetheless so bears beware...At the very least this behavior suggests any downside in the market will be limited.
Only perfect set ups have worked on the short side and even they don't last long as per my last attempt which I got round tripped.
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