It seems individual investors are shoveling money into the market. Inflows into equity funds have been very strong over the past four weeks, according to Trim Tabs Investment Research.
And that’s precisely why some pros are getting out. That right, the catalyst that some pros are using to short this market is --you, sucker!
Trimtabs president Charles Biderman is advising all his professional clients to turn entirely bearish on US stocks in part because you’re coming in.
He says individuals pointed to the market’s bottom with record outflows in March and now they’re pointing to the top with hefty inflows.
In other words, retail investors follow the heard and by the time they join the party it’s practically over. That makes you – and me -- a contrary indicator.
"I happen to agree," adds Fast Money trader Guy Adami. "The retail money typically comes in late.”
But why can’t that be a positive?