In a recent post, I named Raymond James strategist Jeff Saut as one of the bulls who a) was not a Pollyanna and b) possessed an intellectual underpinning to his bullish stance.
Saut has grown more cautious of late and his most recent commentary advises investors “not to wait til May to go away”.
From The Pragmatic Capitalist:
“Our increased caution is driven by a number of metrics. To wit, preliminary data suggests last Friday was the first 90% Downside Day since February, our sentiment gauges are back to as bullish as they were in 1987 (read that bearishly), the CBOE equity put/call ratio is at 0.32, for its heaviest “call volume” relative to “put volume” since August of 2000, stocks are the most overbought since the rally began in March 2009, some of the leading stocks are not responding to good news, Thursday was session 34 in the “buying stampede” that began on February 26th (rarely do such skeins last more than 30 sessions), we’ve gotten that peak-a-boo “look” into the long envisioned target zone of 1200 – 1250, volatility is back to the complacent 2008 levels, and the list goes on.”
Saut remains longer-term bullish but is now in the ‘near-term equities top’ camp.