With the Fed keeping rates on hold, here is the single biggest risk to global markets…
(King World News) May 3: Peter Boockvar – According to II, Bulls rose to 58.5% from 54.7% and they said in response “the danger signal is in place” obviously referring to the contrarian nature of this indicator. We are back to near the 30 yr high touched on March 1st at 63.1% and that also happened to be the day of the closing record high in the S&P 500. All of those new bulls came from the Correction side as Bears remained unchanged at the microscopic level of 17.9%…
To hear which legend just spoke with KWN about $8,000 gold and the coming mania in the
gold, silver, and mining shares markets CLICK HERE OR ON THE IMAGE BELOW.
I’m going to add some recently seen survey and market indicators to this. Over the weekend in the Barron’s Big Money Poll, there were only 9% of investors polled that were bearish vs 16% in the two prior surveys with 51% bullish and 40% neutral. The CNN fear/greed poll is just about exactly neutral at 51 (goes between zero and 100). Last week’s AAII level of bulls was 38.1 which was a 9 week high and which came just one week after touching the lowest since November (I’ve told you how volatile this figure is). Bears are at a 5 week low. Let’s dig a bit deeper. The short interest in SPY’s is at the lowest level since May 2007. See chart (below).
Short Interest In The S&P
The Biggest Risk To Global Markets
I’ll continue to say and I know you’re tired of hearing it but the biggest risk to markets is the Federal Reserve’s unwind of their extraordinary policy both in terms of rates and its balance sheet. It’s a rare time that it’s gone smoothly and hasn’t put us into a recession. And of course the ECB is beginning to try the same thing at the same time.
***KWN has just released the powerful audio interview with Dr. Stephen Leeb and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Today’s Note From Art Cashin Includes Jeff Gundlach’s Bullish Call On Gold… CLICK HERE.
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