Relentless ramp

The market has been on a seemingly non-stop run which has even the bulls feeling uncomfortable. I was clearly wrong on expecting a pullback.  Here's my observations on the sentiment front which is fascinating. The option traders/hedgers have fully given up this week so far. The put/call ratio has been very low even when the market had intraday reversals. Usually you would see the put/call ratio perk up when that would happen which would indicate a certain degree of top picking but not this time. Option traders have fully thrown in the towel and have been buying calls relative to puts hand over fist. AAII sentiment has perked up this week with bulls outnumbering bears by 1.5 to 1 ratio. I gotta tell you though, that's not high enough to give a contrarian sell signal given how strong the market has been. It seems like AAII folks have only begrudgingly been turning bullish. Meanwhile equity fund inflows continue to be mind boggling non- existent and that continues to support the LT bullish case. What's it going to take for people to get back into the market?  DOW 50K?  Last time we had a melt up like this was q4 2017 and fund flows were pouring in.

So, we have a weird case here where the market is very overbought, weak longs have been getting in but there's room for even more weak longs to come in as there is plenty of sidelined money that can capitulate and buy in making this market climb relentlessly further still. It's tough to bet on this though because after a parabolic rise typically comes a parabolic fall and if you get caught holding the bag you will get spanked. But you'll also get spanked trying to pick tops in such a market as well which has been the case for many traders as I can tell by the sarcastic, scoffing comments I see on twitter. Best thing to do at this point might be to just watch the show and wait for a better pitch, but I gotta say, benefit of doubt goes to the bulls in the short term until we get more extremes from AAII and the like.