A fellow trader emailed me this. If this data is true, we are in for some interesting times.
THE "CROWD" GOES WILD!!
(October 10th, 2006) The Chart of Interest shows you the weekly short sales by the public, or the so called "crowd" or "herd" (dumb money), divided by total weekly NYSE volume, compared to the weekly short sales by NYSE members (smart money). NYSE members are all the well known Wall Street broker firms. They have the best brains and analysts working for them and the have tons of money as well. Short selling by the public has now hit levels like never before in recorded stock market history. It is therefore most unlikely that the market is even near a top, because the "crowd" has until now never beaten the Wall Street pros. (Chart of Dow Jones enclosed for comparison)