Many market participants spend a lot of time with sentiment indicators like the VIX or the Put Call Ratio or the Investors Intelligence Index. I look at them too, but I spend very little time on that kind of analysis. Call me unsentimental! I am not advocating that they should be ignored but they should not be overemphasized. They are just a few of the dozens of technical and fundamental variables that you should be using. Early last week, Dennis Kneale was ridiculing the “fraidy cats” as he likes to call them and quite a few other permabulls were suggesting that sentiment was greatly improved. I kept hearing how all the bad news was being ignored and the market was heading higher. So now that bad news is bad news again, we see the value in the previous assessment. Did sentiment change? I think the only sentiment that changed was the sentiment about sentiment from overly sentimental people.