The Herd Is Bearish

Good morning. Premarket futures have a positive bias this morning as investors contemplate another hefty dose of earnings reports. No doubt, significant gains this week in the market have certainly started to lift up the spirits of the herd.

Stocks moving higher in premarket trading include AVCI, REDF, AAPL, SPWR, LOGI, STLD, MLNM, MOT, NDAQ, EBAY, SMSI, ADCT, IFO, OVTI, IMCL, NGRU, PALM, SNDK, and PFE. Stocks moving lower are MOGN, OPWV, AIRM, CTXS, KNOT, BGO, BTU, EXPE, NKTR, XMSR, SIRI, INTC, CTCI, TFSM, and QCOM.

On the sentiment front, the American Association of Individual Investors (AAII) reported the results of its weekly survey. 23.85% of investors said they were felling bullish. This is the lowest percentage since April 2005. Meanwhile, 57.9% said they are feeling bearish. This is the highest percentage since February 2003. So, if you think folks have turned negative on this market (as if the recent performance hasn't been much of a clue), you're absolutely correct.

The day ahead of options expiration tends to be volatile and the bulls' top goal is just to keep the bulk of the recent gains. That would be considered a victory on their part since there are many folks who think this week's gains will prove fleeting. Personally, I'd like to find a few more trades this morning as long as the market shows it can keep the pressure on the shorts.

Have a terrific Thursday!