Investor's Intelligence Survey: Deepest Neg Spread Since 2002.
The Bullish sentiment crashed this week, per II, to 31.1%--while the Bearish sentiment soared to 43.3%. The negative spread of -12.2% was the deepest, most negative spread since late 2002. In fact, looking at the sentiment-spread chart, it looks like these readings match the 2002 lows in Sentiment.
The spread in this survey got as low as 1.1% on mid February. Since then, the spread has been in single digits, but positive. That low spread of 1.1% was typical of a huge buy signal that has worked well, in the past--especially with the small expansion.
But this negative spread portends a truly historic buying opportunity. (Unless of course we're all gonna die, instead :-) )
Meanwhile, the ISEE made an extraordinarily low print of 56 just a few days ago.
I find it amazing that the 2008 chart would line up so well with the 1998 and 1990 charts (SPX), and that extraordinary FED action would also line up (1998 double bottom during LTCM/Russian Rouble crisis with emergency cuts by Greenspan).
What's patently clear right now is that: "There is no reason in world to buy stocks", and "you'd have to be crazy to buy stocks."
Gregor |
