Bloggers Bearish

It didn't take much for the bloggers to get bearish.  This poll is a few days old, but it covers last Friday's down move off a 52 week high last Thursday.  Now we are back to blogger sentiment levels seen after dips in mid April and mid May.  You know what happened after that.  We rallied over 100 SPX points to new all time highs. Not saying that we rip higher again off this dip, but quite surprising to see this level of bearish sentiment after a less than 1% dip.  Without any bearish catalysts, either.  And no, the current geopolitics is not a bearish catalyst.  Geopolitics is an excuse for the non-rigorous who want to blame any little news event for a down day in the markets.  

This just clouds the picture for me.  I am looking for a correction, but it seems much less likely to happen when so many are prepared for it.  Also, if we do get a dip, it will probably be shallow, because of this kind of bearish sentiment.  My anecdotal read on sentiment is getting similar vibes, as Dennis Gartman is neutral (he says you can only be really bullish, pleasantly bullish, or neutral in a bull market), which is his way of saying he's bearish without being called out for it when he's wrong.  Also getting similar views on CNBC.  Another positive for bulls is bond yields going lower and lower, providing a favorable environment for interest rate sensitive stocks.

That being said, there are going to be a lot of IPOs coming out this week, and there is a huge Alibaba IPO coming out in September, so there is a lot of supply that will need to be absorbed in the coming weeks.  Overall, any tiny dips of 2-3% will likely be bought up aggressively by institutions as there have been very few dips, or opportunities to get long this market this year.  

For bonds, I will be looking to buy any weakness today and tomorrow ahead of the nonfarm payrolls number.