Thursday, December 3, 2020

AAII Sentiment remains Neutral, but 65% cash recommended for traders


This short term indicator had recommended 8% cash, 
or less, from March 18, 2020, until October 28, 2020


The Week Ending on December 2, 2020:
 = NEUTRAL
68.4% of AAII Investors bullish
(was 63.2%
=  NEUTRAL
one week earlier)


Four  Week  Moving  Average: 
= NEUTRAL
65.9%  of AAII Investors bullish
(was 62.4%
=NEUTRAL
last week)


Recommended Portfolio Cash
percentage for short term traders: 
 = 65%
(was 56% cash last week)


My own LONG-TERM
Stock Portfolio:
= 100% cash
(was 100% cash last week)
( % cash based on all
seven Economic Logic
stock timing indicators)


For the WEEK
ending 12/2/20: 
49.1% were Bullish 
   (was 47.3% in prior week)
28.3% were Neutral 
    (was 25.3%)
22.7% were Bearish 
    (was 27.5%)


AAII  Indicator Analysis:
    ( over 80% is Bearish )
( 71% to 80% is Moderately Bearish )
( 50% to 70% is Neutral )
( 40% to 49% is Moderately Bullish )
  ( under 40% is Bullish )
 
 
This short term
indicator recommends
from 0% to 100% cash
in a stock portfolio,
based on an online survey
of individual investors.
 
This is a short term
contrary opinion
market timing indicator:
-- It is bullish when
AAII individual
investors are bearish,
and vice versa.
 
The four-week
moving average,
has much less
volatility than
weekly data.
 
Active traders
may prefer
the weekly data.
 
Data Source:
https://www.aaii.com/sentimentsurvey

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