Stock Market sentiment is getting crazy again.
Everyone is bullish on the stock market right now and no wants to tell you to be cautious about it anymore, because they are afraid that you will just get mad at them if they do.
The market went up after BREXIT and the January dump was seven months ago so people don't want to think about stock market risks anymore and some have convinced themselves that the stock market can never drop ever again.
All the masses want right now is to hear that the stock market will go up forever and that they do not have to do anything, but sit there and they will get rich.
Well last week I increased my bets against the stock market and reduced my long positions.
No I did not sell everything, but I did do some selling.
I use a rebalancing system that makes me periodically take profits from time to time.
Most people buy on rallies and sell on crashes, but I do the opposite.
So I have been selling instead of buying this August!
When CNBC Fast Money boys have been yelling buy this month I have been laughing.
And on Sunday in the Power Investor group I talked about a particular sector that I am focusing on as a sector to bet against that can drop even if the market does not.
I'm probably going to do some new trades on the open.
If the market just keeps drifting the ETF I am betting against is likely to just to drop anyway.
Here is the latest Investors Intelligence survey.
Image may be NSFW.
Clik here to view.
This survey comes out every single week and is a poll of newsletter writers and investment advisors.
The red line is how many people are bearish and the green line is the number of people that say they are bullish on the stock market.
The bulls went up to over 56% last week and the bears down to 20%.
Now levels over 52% historically are extreme bullish readings for this survey.
Last year the bulls got to 60% and that only happened twice before in the entire history of the survey and the bears last summer reached a level not seen since before the 1987 stock market crash.
In February for a brief moment though people got scared and the bears went up to exceed the numbers of bulls.
That was a good buy point on the survey, but now we are at a good sell point.
The bulls have soared back up as everyone who can has bought back into the stock market and the bears have fallen as just about no one thinks the market can pullback now.
The rally made the bears throw in the towel and those still bearish to keep their mouths shut.
But I think now is the time to bet against junk stocks and bet against bad sectors.
You may not agree with that, because most people do not.
However, even if you do not agree with my view you do know that something big is coming in the markets that is going to take people by surprise.
Market volatility and volume has collapsed to nothing in the past few weeks and whenever volatility goes to nothing a big move is ahead.
There are different ways to make money in a situation like this.
You do not have to bet right on the direction things will go into to profit, but only that things will move.
You can do this by making a bet on an expansion in market volatility using options in the stock market and even in gold.
If you want to know how to do that the best thing I can suggest is that you grab Matt Morris's Fed Minutes System, because it is based on this strategy and explains it.
This morning CNBC is talking about the Jackson Hole Fed meeting and a lot of people are expecting it to move the markets.
They are debating what the Fed might say, but we all know things are not going to sit here like they have done in the past three weeks forever.
It's coming.
Most people are asleep and are going to sit there and let the market move their accounts in one big direction one way or the other out of their control.
But some are planning ahead right now and it is not too late for you to do that too.
This special offer Matt Morris has put together will go down tonight.
So check it out by going here: Matt Morris Releases The Fed Minutes System.