Smart vs. Dumb Money

[Bullitt]

That post above should spark some good conversation today. Azanon, I've got news for you. You are either dumb money or smart money- kind of like you're either on a Major League Baseball roster or you are on a softball team.

 

[tsptalk]

Two things we can count on: I am, and have always understood, that I am part of the dumb money. And two, Azyboy will come by every once in a while and throw us an insult, to remind us all how much smarter he is than all of us.

I don't know if we are in a bull or bear market at the moment, but our seniment survey has guidelines which are currently telling us that the S&P 500 is still in a bear market. The 50-day EMA must move above the 200-day EMA before the system makes the switch to bull market ratios.

I am just saying, if anyone does feel like we are in a bull market than we are not on a sell signal. Sorry, no conspiracy theory here.

 

[Guest2]

- delete

:nuts: BOINK! :nuts:​

 

[tsptalk]

I think he just deleted a double post SB.

 

[Steadygain]

- delete

Azanon,
Hey man - there's probably no one on the entire MB that has better set the example of 'saying the wrong thing' AND 'getting too wrapped up in an 'emotional frenzy' as I'm posting.

That you put 'Delete' is good enough for me - but remember once you write something it's pretty much there to stay. So don't ever say something like, "I don't know any black man that has the ability to keep it in his pants'... "Don't let your emotions with these wonderful ladies go overboard" - 'Don't be too defensive and by all means try not to be insulting'

Since you brought the topic up - it's important to note that Tom can only be understood in light of his numerous other posts. Only when you reflect on the whole picture - his general grounding and everything - can 'the post you're referring to be appreciated'

In the same sense - this 'One Post' that obviously reflects some discouragement over the Market Conditions and such will in no way keep me (and the others) from seeing the REAL YOU.

Perhaps Tom's comments were strictly 'Neutral' and meant to make each one of us determine for ourself if this is the time to BUY AND HOLD - because we are entering a promising investment opportunity; or shoud we STAY in SAFETY.

That is something each - and everyone of us - has to decide.

PEACE MAN - BE COOL

 

[Birchtree]

I believe this week the smart money is still less bullish while the dumb money indicator has maintained a very bullish posture. In a bear market environment this widening divergence will usually favor the smart money and the market would eventually roll over. In a bull market, such a divergence has no consequence. This market now will not pause on the way up - the rest has been completed and now the games will begin anew. And the bull certainly will be extremely powerful.

 

[Bullitt]

The "Dumb Money" indicator is extremely bullish; the "Smart Money" is neutral; insiders are net sellers; and the Rydex timers seem to be on the wrong side of the trend. But even these trends can become exhausted over time and they won't persist forever. In the absence of a melt up, meaningfully higher prices will not be achieved until we see lower prices first. Therefore, stocks are for renting not owning.

Ha. Buy and hold was like, so yesterday Brah- Just take a look at any newspaper or magazine headline. Trading is what all the cool kids are doing today.

http://thetechnicaltakedotcom.blogspot.com/2009/10/investor-sentiment-i-am-changing-my.html

 

[Bullitt]

The Dumb Money just keeps buying Calls. Happy days are here again.

View attachment 8632

 

[Bullitt]

ISEE came in at 64 on Friday and that means the retail investor is buying puts. I think that reading could have been lower if the Algos didn't blow out any weak bears in the last 5 minutes on Friday.