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Strategies & Market Trends : Investor sentiment surveys - a technical indicator

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To: Q. who wrote (29)4/5/1997 3:01:00 PM
From: Mat Miller   of 167
 
John,

I would say the bias for SI is that we are more optomistic for the future compared with the business community at large. Even July 1996 was 3 bulls to 2 bears. Per your II data, that dropped to 1 to 1 for many weeks during that period.

So I was surprised when the daily survey dipped below 1. But, with just a small bounce in the market, the ratio is back to 3 to 1. The current rally may be a bear trap, but if too many people regain their optomistism and buy, it will be a literal bear trap by trapping the bears!

Mat
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