A Message From Investor Psychology

In my four decades of trying to figure out this market puzzle, the one area that requires the most flexibility is Psychology.

This morning, let's take a quick look at the Rydex Ratio, which is a measure of "dumb" money sentiment.

You can see in the prior chart that these "dumb" investors have moved into a very bullish mood, which is negative. The next chart shows you the "mirror image."

The smart corporate insiders are very bearish.

Overall, our Psychology Composite continues to tell us to go slow in the short-run.

Don Hays

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