Not a Bear in the House

Join our Larry McDonald on CNBC’s Trading Nation, Wednesday at 2pm.

Don’t miss our next trade idea. Get on the Bear Traps Report Today, click here

Where are bond yields going with risk of a euro breakup on the rise?  Click here (above) for our latest report.

Newsletter writers in the “bullish” camp according to Investors Intelligence fell to 58.6% from 60.2%, this broke an 8-week string of gains which began at 41.7% in early November.

A BIG however, Bullish sentiment remains above 55%, clearly in the “danger zone” for a market roll over.  In 2014,15 and 16 investors were far better off holding cash levels high in January and putting money to work once fear returned to markets in the middle of the year.  We are in this camp for 2017.

Pick up our Trade Alert Recap Here

We were Buyers of Stocks in February and June, Fear was Value in 2016

aaii-bears-2017-at-18-3The last time there were this few bears, U.S. equities plunged nearly 13%.  We advised our clients to buy stocks aggressively in February (click the link below, we’ll send you the reports) and June of last year, today the risk – reward is NOT attractive in owning stocks.  Bears slipped to lowest since Aug. 2015 to 18.3% vs 18.4% last week Correction rises to 7-week high 23.1% from 21.4%.   The bottom line, those who beat the market in recent years were buying stocks while others were running away from them.  As you can see above, as the bears in peaked in February, stocks bottomed. 

Join our Larry McDonald on CNBC’s Trading Nation, Wednesday at 2pm.

Don’t miss our next trade idea. Get on the Bear Traps Report Today, click here

Where are bond yields going with risk of a euro breakup on the rise?  Click here (above) for our latest report.

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