Curb your (bullish) enthusiasm

Mid-week market update: Subscribers received an email update of the tactically fragile environment for US equities on Monday. There are plenty of reasons to be cautious.

Trade Followers observed that the Twitter breadth of all sectors are bullish, and such conditions are reflective of overbought market conditions:

Last week, sector sentiment gleaned from the Twitter stream had every sector positive. When this occurs a short term market top materializes usually within the following week. Once in a while, the sectors will paint another week with all of them in positive territory, then the top comes. Basically, when every sector is being bought aggressively it signals that the market is overbought.

That`s the just first warning. There are more.

The full post can be found at our new site here.