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Bulls Lathered Up to Historical Levels

By John Del Vecchio and Brad Lamensdorf

It’s the running of the bulls…

Retail investors are as bulled up as they have been in a decade. 

Take a look at this chart, courtesy of SentimenTrader.com: 

Bulls Lathered Up to Historical Levels
Bulls Lathered Up to Historical Levels

The black line is the S&P 500. It’s hitting highs.

The blue line is the ratio of levered bulls to bears using Rydex Funds. 

By and large, the folks that buy these funds are wrong. A lot. Not only are they wrong, they are wrong with leverage. That only makes the problem worse when things don’t go their way.

Longs on leverage are breaking out to 10-year highs. Compare that to just a few months ago in the depths of the COVID lows when bearishness was off the charts.

We have come a long way in a short time. 

Can the market push higher from here? Yes. 

A lot higher? Possibly.

The why should I care?

The masses just don’t make the right call at extremes. 

Markets change.

The stocks that drive the market change.

Human nature never changes. 

These investors will be caught flat footed. Then they will tend to dump their long positions at the same time. The chart will the swing the other way. Eventually, that will create a big opportunity to snap up stocks at deeply oversold levels.

We are nowhere near that level yet though.

The odds favor a butt kicking.

A butt kicking so big that gains from here will likely be lost. And, then some!

What can you do about it?

Give Brad a call. His “Master Key Indicator” is pointing to something big happening. This key unlocks the mysteries of the market and was created using Brad’s 30 years of experience working with billion-dollar managers and the research insights of SentimenTrader.com. SentimenTrader is a leading research firm with clients in 50 countries.

Only 11 spots are available. And, you will need to schedule your call within the next week to take advantage of this opportunity to speak with Brad about how the Master Key Indicator can position your portfolio to take advantage of this big opportunity that should reveal itself within the next two months.

Schedule your call here:


Brad Lamensdorf

Brad Lamensdorf, the founder and portfolio manager of Active Alts, is a principal and co-manager of the AdvisorShares Ranger Equity Bear ETF. He previously managed a long-short investment partnership from 1998-2005 under the name Tarpon Capital Management. Earlier in his career Mr. Lamensdorf was an equity trader/market strategist for the Bass Brothers’ trading arm. He managed a short only portfolio in addition to co-managing a $1bil hedging program. He also served as in-house market strategist for the entire internal and external network of Bass Brothers money managers.

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