Investor Psychology Update

Our Psychology Composite is at P4 this morning, and that means the short-term is still slightly vulnerable.  If you look at some of our Psychology indicators, you can see what I mean.

Looking at the AAII Bear/Bull Ratio below, you can see that it was in the green zone a few weeks ago; however, the indicator has moved into the red zone (as the level of bullishness has increased).


Even the corporate insiders have moved into the sell side of the equation, as you can see in the chart of the Gambill Ratio below.


It is not a time, therefore, to go crazy on the bullish side, but it is a time to continue to focus on growth.


Don Hays

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