Gee, if only we could short the bid-ask ratio. As you know, the market's up about 7% in the last 6-7 months, including a 6% correction, so the decline in the bid-ask ratio looks like one of those statistics that, though interesting, doesn't necessarily make anyone any money.
7% is peanuts in the overall scheme of things. Most likely enough enough to get the bag holders to join the party for a last hurrah, as usual.
Not that like I the poster u quoted, but he has a great point. Big cap, especially large Dow components is where all the funds are flowing into. Multinational corps who can capitalize on globalization and cheap money better than any other companies, except maybe miners & drillers.
You're missing the point. The bid-ask ratio has declined while price has gone in the opposite direction. If you started shorting the market a couple of months ago based on the bid-ask ratio, you'd be screwed.
That's one of the limited reasons I see that Dow components are doing well...I agree. Also, buybacks seem to be the other tiger. Cheaper dollar makes overseas gains look better too. The indices are still not much money by themselves...maybe with leverage, but a 7% return is really very little unless you're trading a $5M stake in my opinion.