Quote Originally Posted by ananda77 View Post
DUMB MONEY:
-fully invested -no worries mate-
...re: Dump Money -according to 'Technical Take'-

1. The "Dumb Money" indicator looks for extremes in the data from 4 different groups of investors who historically have been wrong on the market: 1) Investor Intelligence; 2) Market Vane; 3) American Association of Individual Investors; and 4) the put call ratio.

-The "Dumb Money" indicator remains extremely bullish, and it actually ticked up this past week- The "dumb money" or retail investor (sorry, no offense meant to those who have been right for the last 3 months) continues to buy the dips aggressively.

2. The "smart money" indicator is a composite of the following data: 1) public to specialist short ratio; 2) specialist short to total short ratio; 3) SP100 option traders. The "smart money" is neutral and has yet to tip its hand. Company insiders continue to sell shares to an extreme degree (4:1 ratio -data point 04 October 2009)

...and as the market has shown so far this week, the up tick in the "Dumb Money" indicator and the extremes seen in the Rydex asset data would suggest continued buying on the dips. The upward bias in prices remains until the extremes in bullish sentiment are unwound.

Kind Regards