-->“The Investors Intelligence percentage of bullish
advisors has risen to 52.7%, up from a dip low of
43.5% (seen the last week in April); the percentage
of bears, at 20.4%, is the lowest since last December.
Odd-lot short selling has collapsed - ‘tis even lower
now than it was last December. Ditto the AAII polls.
This extremely low degree of bearishness speaks of
complacency, passivity, comfortable-ness - no need
to worry, and therefore no need to sell. The rising
percentage of bulls is, of course, typical of an increasingly
seductive market. These readings have little or
no timing to them, but as contrary indicators their
track record is even better than ‘magazine covers’ in
warning not to be complacent when on the same side
as the crowd... but to carefully considering the
devil’s alternatives, instead.”
Justin Mamis
The Mamis Letter
June 18, 2005