The Hearts of Market Participants is Bearish While Their Minds are Bullish

If Ben Graham were alive today then he would say the market was overvalued. This context is especially important right now in light of his ’63 speech just a few years near the height of the 7965 market top but more importantly given the hearts of traders today via the following chart.

Yet given where we are with traders minds as it relates to credit… there really has not been a material move toward a “flight to safety.” YET!
The question remains how fast will this market move once and if it starts to crack. I don’t have to give you a list of every major market participant who has either said our monetary policy has failed or the markets are headed down over 50% especially if you are a reader of Stockman or ZeroHedge.

But I don’t have to give you names you have the proof in the short interest chart above as a sign that the wheels are getting very wobbly.

Always refer to the following chart … to remember why consequences are more important than probabilities when it comes to your stock allocation…