coolhand's Account Talk

[coolhand]

Well, the money managers at NAAIM are getting more cautious. The mean average fell about 7 pts. The mean average was 64.64 last week, and now its sitting at 57.55. I am going to call this modestly bearish to neutral overall. The bears are now fully short, but NOT leveraged. the bulls are still fully long, but for the first time in a long time they are NOT fully leveraged. They are only about half leveraged. Very interesting and perhaps should be reason for concern at this point. Especially since the bulls are showing uncharacteristic caution. Freedom day is next Wednesday and that could bring fireworks. I really don't know what to expect here, but there are reasons to be especially wary right now.

 

[coolhand]

Last week, I said this Wednesday could bring fireworks and boy did it. NAAIM was modestly bearish to neutral last week, and showing signs of caution. This week, the mean average dipped more than 8 pts and that makes it modestly to moderately bearish. These money managers are playing both sides right now as the bears, who were fully short, but not leveraged last week remain fully short this week, but are also now FULLY leveraged. The bulls were fully long last week, but only about half leveraged. This week, they remain fully long, but are back to being FULLY leveraged. This looks like a prescription for volatility.