Out Fox The $treet

Amazingly, Seeking Alpha is unable to find another Bull to highlight their view on American Airlines (AAL) . All of the other contributors on the financial site pretty much think the airline is going bankrupt. When just about every so-called financial expert is on the same side of a trade usually the opposite happens. Passenger traffic continues to rebound in the best signal the market will return to normal by next year. More research: American Airlines: Stop The Bankruptcy Talk Disclosure: Long AAL. Please review the disclaimer page for more details. 

Bespoke ran a poll this weekend asking readers where they thought the SP500 would end one month from now. Very interesting to see that currently 58% of respondents are bearish. While a poll of only 429 votes is hardly scientific, it is very indicative of the current mood of the markets. Apparently everybody is expecting a another summer selloff which could be a good signal that after 2 nasty summers the market is ready for a surprise. Will the S&P 500 be higher or lower than its current level one month from now? Selection   Votes Higher  42%                      182 Lower  58%         247 429 votes total Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Jeff Kleintop of LPL Financial speaks to the Breakout crew over at Yahoo on the difference between sentiment indicators and actual data. As Stone Fox Capital has been saying for a few months now, the data such as retail sales, industrial production, initial jobless claims, yield curves, and leading economic indicators have been relatively strong or at least not indicating a recession. On the flip side, the sentiment data such as consumer confidence and the regional fed manufacturing data have been bad. The Philly Fed indicator is the main number that triggered the panic, but in reality this number records sentiment and not actual manufacturing activity. Note how the ISM reported 50.6 for August though Philly Fed was negative 30. Clearly the reality is a ton better than the sentiment. Guess the question is which one catches the other. Interview with Jeff: