Confused Bulls Riding the Market Rollercoaster

The latest data from the AAII shows just how confused investors are regarding the current market environment and whether the recovery is real. Just 10 days ago the market was in the middle of a minor 6% decline and it appeared as though earnings were largely priced in and that economic data was beginning to disappoint. Markets tanked nearly 3% the day before Halloween as comments from Carl Icahn and Wilbur Ross spooked the market. Same store sales compounded the fears. Investor sentiment tanked to its lowest level since the March 8th low.

A few earnings reports and economic reports later, and the market has rebounded over 7% and psychology skyrocketed. Although we’re not quite at a psychological extreme, this uncertainty is likely to persist, and paying close attention to the psychological extremes will likely continue to reward investors as the economy continues to confound investors.

Comments

[Moon Kil Woong:]

Only some of the public is confused. The majority are staying away from this bubble as shown in the low volume numbers. I also turned bearish and sold yesterday. The low volume and questions whether the Federal Reserve can keep up the dollar depreciation dump in this political environment is enough for me to have alarm bells ringing in my head.

Nov 13 12:26 PM