26 AUG 2009, Wednesday

1. Investment newsletter writers are decidedly less bearish than they've been in some time. According to the weekly data from Investors Intelltigence, bullish sentiment among newsletter writers is at its highest levels since January 2008. Meanwhile, bears are practically in complete hibernation. At a level of 19.8%, bearish sentiment is at its lowest level since late 2007.
2. Sentiment is not necessarily a timing tool because it can go to extremes and stay there for long periods. But it is useful to determine the risk environment.
3. Afterall, once everyone is bullish who is left to power the buy side? Except Goldman Sachs High Frequency Traders (ie, extraordinarily high speed computers)...of course!