Bullish Sentiment Can Be Bullish
In a time and age where every investor sentiment indicator is used as a contraian figure, its likely that most of the analysts spewing such non-sense haven't ever reviewed whether it is factual. First, just because a sentiment figure is calculated it doesn't mean that the pollsters are actually rigorous in their answers. Its easy to say your bullish these days, but not likely as easy to have actually invested cold, hard cash. Hasn't the consumer sentiment numbers taught us over the years that spending doesn't always match sentiment. Second, being initially bullish doesn't mean that investors can't an won't remain bullish for a long time. Opinions don't seem to swing that quickly. Ciovacco Capital did some interesting work on investor sentiment and found out that it's not as indicative of a pending market crash as the procrastinators on TV would suggest. They worked with Robert Colby, author of The Encyclopedia of Technical Market Analysis , to bet...