Smart Money Beating Up Dumb Money

The spread between the Smart Money and Dumb Money Confidence has reached -50% for only the fourth time in 15 years, according to this article from MSN.

Jason Goepfert of SentimenTrader has come up with this index, which looks at things like commercial futures hedging, equity option put-to-call ratios and mutual fund flows and boils them down to two sets of numbers: How confident the smart money is in the market and how confident the dumb money is.

Goepfert has said the diversion between smart and dumb money is the highest its been since April and it's only been this high six times since 2000.