Who isn't bullish

All is well in the market, the market didn't tank in November, after it was believed Ireland would be forced to use Guinness as it currency.  Instead the market remained above support and has now climbed to new highs, even as unemployment has climbed.  As the market has rallied, more and more people have moved onto the Bull Train.  It has been said that when the market moves to heavily to one side it tends to reverse.  I.e If everyone is bullish the market has a tendency to move down, since the majority is not always right. There are a few ways to look to see where the market is tilted.

Put/Call Ratio:  Notice what occurs when the CPC ratio moving averages move below .75.  You can see this via the circles. 

 Put Call on all Equity:

Decision Point, has a great tool that allows you to check out Rydex Flow of funds.  It allows you to see where money is money and what funds the money is going into.  Notice the flow of funds have been into the bullish sector and look at the level the bear funds is.  The bear funds are at the lowest level and have marked some market tops.  Of course you can see when the market is in an uptrend the bear funds can remain at these low levels. 

What does this data all suggest, well it suggest that the bull trade is getting crowded and this is another warning that the market may have run out of energy to keep going higher.  With the bull trade so crowded once it goes the other way, there will be strong selling pressure.  It does not mean that tomorrow the market will go down, but it means to keep a vigil eye on the market. 

Jump on this train!

CPC has moved into Very Bullish terriotory which means the market is heavily skewed to the bullish side.  What happens when the everyone and their mother is bullish.  The market goes the other way!

 This uber-bullishness is show in the NYTV total ratio chart I've been showing you.  Now 75% of the market is moving up.  That means 3/4 of the market volume is up, this can't continue forever that is fo' sho.

 Check out Serge over at ETF Corner's look at the Bull Train

 The market is way overbought and bullish, I am still saying that we are seeing a top being put in and that we should move down from these levels.

CPC getting to bullish?

CPC moving average is below .75 the bull trade may be getting to crowded.  Look at the last few times the CPC 2 EMA dropped below .75.  The market corrected it's self a few days later.  In Febuary the market made a heavy correction.