19 October 2006

Credit Extreme

Safe Haven | Credit Extreme Emotion: "Sentiment Update
For the last 11 days, MBH Commodities' Daily Sentiment Indicator (DSI) has recorded a 90% or higher bullish reading for the S&P500 index. This is the highest 10 day average ever recorded in the 19 year history of this indicator. Investors are now more optimistic towards this index than they were at tops in late 1987 or early 2000, which led to falls of 35% and 50%, respectively. The NASDAQ's sentiment is also at extreme levels. For the last 10 days, an average of 92% of investors surveyed believe the NASDAQ will go higher. What makes this even more amazing is that the S&P500 and NASDAQ indexes are not making new highs. With extreme optimism levels not seen in over 19 years in these equity markets, it would be wise to prepare for a historic sell off."

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