NAAIM came in a bit less bullish this week. That's 2 weeks in a row that they've dropped their bullishness. I would say they are now modestly bullish. They are still not taking any serious positions on the short side, which does seem odd given the weakness over the past 2 weeks.
So, what does this tell me?
This is just a guess, but obviously they are still expecting a rally and I don't think it will be a garden variety type. I get the impression they are expecting gains (significant?) on the long side and that any weakness prior to that rally starting is just part of being ready for the real money. Again, this is just a guess, but why else would smart money stay largely long? What happens on the other side of November 3rd? Is there something else that they are waiting for? This is why I follow smart money. I may not know exactly what they are collectively thinking, but they often know things that I do not.
Anyway, those are my thoughts.
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