Zero Hedge posted a TrimTabs video on January 20. TrimTabs reports on supply and demand of shares of stock and money available for investment. Some interesting highlights from the video:
- The VIX recently hit its lowest level since July 2011.
- Hedge fund S&P 500 optimism is the highest since July 2011.
- Put/Call ratios five day average was recently the lowest since July 2011.
Extreme levels of optimism can be a contrary indicator for asset prices. A logical question is how did July 2011 investors make out?
A few more nuggets from the video - newsletter writers have the highest level of optimism since April 2011. How did that work out? Not well - the 2011 market peak was made on April 28. Mutual fund managers are more bullish on stocks today than anytime since April 2010; the S&P 500 dropped 17% from the April 2010 highs to the July 2010 lows. The full video from TrimTabs is below - notice the reference to what is driving the markets at the 2:43 mark (hint: money printing).
After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.
Source: Ciovacco Capital
