Dopey, the last time I was truly bullish the stock market was back in early March 2009 when the Daily Sentiment Index survey of traders had plunged to a record low of only 2%!
This is simply because extreme opinions, shared widely, constitute the single most reliable indicator of an impending change of direction for a market.
Most recently I posted this just 11 days ago ..“From a 20-year optimistic extreme of 96% bulls in late January to the bearish extreme sentiment of only 9% bulls on 8 February, these Daily Sentiment Index readings, coupled with extremes in put/call ratios and volatility, both signaled the selloff and the bounce which followed..”
So from a traders perspective this strategy, within an Elliott wave count framework coupled with other measures of market breadth, volume and sentiment, allows for traders to go either long or short.
