Look at the late 1990's pattern where BID started crumbling down well ahead of the market overall. This also happened in 1990, and you can scroll back and see for yourself.
BID doesn't always get it right, but it is interesting. Sometimes it is a "false warning" and they seem to alternate signals, "foretelling" and then "false warning". Nothing is perfect. But when speculation comes off the market, like it has in BID lately, it can mean that cooler heads are prevailing and that cash is building up on the sidelines.
Pairs Trade: The trade is long BID, short SPY ( DIA or SPX ).
With the VIX so low and the market so high, this is about the cheapest you will ever be able to sell your stocks and replace your portfolio with call options and sit on the sidelines and wait for the fundamentals to catch up to the stock market.
Tim 2:14PM EST, May 22, 2014