Bullish Sentiment of Newsletter Writers is High

By on November 29, 2009

Bespoke Investment Group points out that the spread between bullish and bearish writers is a wide 33 percentage points, the highest since December 2007. Bullish writers now stand at over 50%. Looking at this development as a contrarian indicator places the market on thinning ice.

SMA Comment: As a group, stock market newsletter writers are not very prescient. However, I wouldn’t get overly bearish on the market unless we saw 70% of them become bullish.

Source:

Bespoke Investment Group
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