They don't raise the slightest doubt of conviction when the Dow soars 2,676 points in less than two months – 23,940 on November 29th to 26,616 on January 26th. But when the market takes back that move in 6 trading days it's a problem that Congress and the Fed need to "fix."
The stock market's small accident last Friday was a warning signal. But, in the context of the move made by the Dow since it bottomed on March 5, 2009, barely registers on the radar screen:
I saw this table on Twitter and thought it was a good summary of the extreme bullishness that I've been documenting for the past few issues (Short Seller's Journal):
The old adage states that "they don't ring a bell at the top." But that table above seems to have nine different "bells ringing." Note: "NAAIM" is the National Association of Active Investment Managers (Note, I know MMF is money market funds but I'm not sure what the rest of the metric represents other than its some measure of investor portfolio cash vs stock holdings). As you can see, every indicator that measures relative bull/bear sentiment is at a bullish extreme.