Only Three More Points to Go
On Tuesday, I put you on high alert for the release of this week’s American Association of Individual Investors’ (AAII) bullish sentiment reading. It’s out – and it’s down!
It fell another 4.3 points this week to hit 27.9%.
To think that only six weeks ago, bullish sentiment stood at a lofty 55.06%…
We’re now only 2.9 points away from the scary mathematical certainty I mentioned on Tuesday.[ad#Google Adsense 336×280-IA]Remember, every time AAII bullish sentiment has dipped below 25% during this bull market, the S&P 500 Index went on to rally over the next six months.
Gas up the truck and get ready to back it up!
Seasonal trading patterns also point to a contrarian buying opportunity right now.
As you can see, February is the second-worst month for the Dow.
However, it’s essentially a flat month, which is followed by two of the most consistently profitable months of the year.
Chew on that before you panic and rush for the exits. You could be exiting right before the next leg higher. And I’d much rather you be counting profits, instead of nursing regret, a couple months from now.
Ahead of the tape,
Source: Wall Street Daily