Here is a very interesting quote from a Yahoo! finance article posted on Friday evening...

"Ironically, the investing crowd tends to get bullish only after most of the gains have already been seen. That's why savvy investors use this and other sentiment indicators as a contrarian tool. As the bullish crowd grows, so does the chances of a market reversal.

In the March 2nd Trend Change Alert, the ETF Profit Strategy Newsletter foretold that this extreme of investor sentiment (bullishness), would be seen towards the end of a powerful 40% rally. In fact the top of this rally, a counter trend rally, would be marked by a 'the worst is over attitude' which is exactly what can be observed today.

Similar to 2007 - when nobody expected the upcoming storm - financials (NYSEArca: XLF - News) and real estate (NYSEArca: RWR - News) should lead the charge towards the downside and send broad index like the Dow Jones (NYSEArca: DIA - News) to new lows. Judging by the degree of optimism present today, the move to the downside will be quite powerful and will leave many - just like in 2007 and 1929 - stunned. "

Another common story on Friday evenings deals with Bank failures. Here is an excerpt.

"Regulators on Friday shut down two banks in Florida and one in Oregon, bringing to 72 the number of federally insured banks to fail this year under the weight of the weak economy and rising loan losses"


Why do these run on Friday evenings? It is hard not to imagine a scenario where the media is somewhat orchestrated...

Happy trading!