AAII Sentiment turned Bullish today -- 0% cash recommended for traders (last time at 0% was in most weeks from April 1 to August 19, 2020)

 Data Source:

 https://www.aaii.com/sentimentsurvey/sent_results

 

This is the only short term market timing indicator I track, of the seven market timing indicators I follow, which I update once a month. The last update was Neutral, here:

https://el2017.blogspot.com/2022/01/economic-logic-stock-market-timing.html

 

AAII Sentiment does NOT tell if we are in a bull market or a bear market. It just tells traders if this buying stocks today is a good idea for the next week. The indicator can be different next week.  It is a contrary opinion sentiment indicator, so it is bullish when AAII individual investors are bearish, and vice versa, recommending from 0% to 100% cash in a common stock portfolio. Based on market sentiment from an anonymous online poll of members of the American Association of Individual Investors (AAII).  The four-week moving average has much less volatility than weekly data, but active stock traders should prefer the weekly data.

 

Week Ending on January 26, 2022: 

= BULLISH

30.4% of AAII Investors were bullish

(was 31.0% bullish = BULLISH last week)

 

Four  Week  Moving  Average: 

= BULLISH

37.6% of AAII Investors were bullish

(was 44.0% bullish = MODERATELY  BULLISH last week)

 

 

Recommended Portfolio Cash

percentage for short term traders: 

 = 0%

(was 10% cash last week)

 

 

Data for the week ending 1/26/22: 

23.1% were Bullish 
   (was 21.0% last week)

23.9% were Neutral 
    (was 32.3%)

52.9% were Bearish 

    (was 46.7%)

 

 

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 )