Thursday, July 09, 2009

Investor Bearish Sentiment Increases

In the investor sentiment survey reported today by the American Association of Individual Investors, individual investor bearish sentiment increased to 54.65% versus last week's reading of 44.59%.

The average bearishness level going back to July 1987 is 30% with a standard deviation of 10%; therefore, this week's bearishness reading is over 2 S.D. from its average. As a result of this increased bearishness, the bull/bear spread came in at -27%. During the first week of March, the bearishness reading was as high as 70.27% and the bull/bear spread equaled -51%.


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