From a contrarian standpoint, today’s reading of individual investor market sentiment, as measured by AAII, helps to explain in part the good underlying bid to this market over the past week. AAII, always a very volatile, fickle reading said Bulls fell to 22.2, the lowest since Aug ’10 and down 8 pts from last week. Bears rose to a 3 week high at 41.8 from 34.7. Those that are neutral rose to an 11 week high at 36.
With Europe close to tying the ribbon on the bailout gift for Spanish banks, Germany is making it clear that every penny given to Spain will be watched, http://thatfilmthing.com/wp-content/uploads/2011/11/little-fockers-poster-robert-de-niro.jpg and money should not be used to bailout those banks that should fail. After selling 3 debt issues out to 7 yrs, the Spanish 10 yr yield is back above 7% and the 2 yr yield is at a 3 week high.