Comments on: Sentiment Overview: Week Of June 12th, 2009

by: Babak

Mon, 15 Jun 2009 18:35:48 +0000

dacian,
I put smart money in quotes for a reason. On average the smartest and most well capitalized players are the hedgies. ‘Dumb money’ would be retail investors/traders. The sort of players that play the market part time, punters if you will.

Senta,
as measured by ChartCraft (Investors Intelligence) at the spring rally newsletter editors were very bearish - 47.2% were bearish. And according to Hulbert’s Stock Newsletter Sentiment Index a bit earlier in March 6th the average market timing newsletter was recommending a 20% short position to their clients. This is why we use these measures as contrarian indicators and personally I listen to smart guys like Kass (who is a hedgie).

Finally, the BP index has reached an extremely high level where historically it has flagged important market tops.

by: Senta

Mon, 15 Jun 2009 00:57:18 +0000

Interesting that you call hedge funds “smart money” and allude to stock letter writers as “dumb money”. Well looks like the smart money missed a 40% rally.

Also the S&P 500 Bullish percent index has confirmed a bull

by: dacian

Sat, 13 Jun 2009 18:06:42 +0000

“The bad news is that the so called ’smart money’ hasn’t really believed in this rally”

Babak, can you tell me your definition of “smart money”? Where do you read this “smart money” data? An btw, who is “dumb money” and how do u see it? thanks