AAII Sentiment remains Bullish, but the seven indicator EL Market Timing Total remains Bearish

 Data Source:

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

 

My seven STOCK  MARKET  TIMING  INDICATORS were:

BEARISH on July 15, 2022

...... Economic Logic: The ECONOMIC LOGIC stock market timing indicators remain Bearish at -4 (range from -7 to +7) (el2017.blogspot.com)

 

BEARISH on June 12, 2022

https://el2017.blogspot.com/2022/06/the-economic-logic-stock-market-timing.html

 

 BEARISH on May 1, 2022

https://el2017.blogspot.com/2022/05/as-i-warned-on-april-17-economic-logic.html

 

MODERATELY  BEARISH on April 17, 2022:

https://el2017.blogspot.com/2022/04/economic-logic-stock-market-timing.html

 

NEUTRAL on March 11, 2022:

https://el2017.blogspot.com/2022/03/economic-logic-stock-market-timing.html   

 

MODERATELY  BEARISH on February 8, 2022:

https://el2017.blogspot.com/2022/02/economic-logic-stock-market-timing.html

 

My average of seven useful indicators 

works better than any single indicator.

Indicator  Analysis:

This is an indicator of small investor market sentiment. 

When these less sophisticated investors get unusually bullish, it's time for traders to sell.  When very few are bullish, it's time for traders to buy. ... 

This is the only short term market timing indicator, of the seven market timing indicators I follow.

This short term AAII Sentiment indicator 4 week average has been bullish for 25 weeks in a row, as interpreted based on past experience, indicating that the stock market is oversold. But unlike in past years, so far there was not much of a market rebound, until the S&P500 was finally up +9.1% in July 2022 following readings of an unusually low 25% bullish (very bullish as a contrary opinion) for the week ending June 15, 2022, and even lower at 23.5% bullish for the week ending 6/22/22. 

With this indicator, you can look back after a year is over, and see that the lowest AAII bullish levels were good buying points for traders, and the highest AAII bullish levels were good selling points for traders. But the bullish percentage of investors in 2022 reached LOWER troughs than in the past 16 past years, making the indicator nearly worthless.

I'm looking for a replacement stock market sentiment 

short term indicator for next year.

 

AAII Sentiment does NOT tell us if we are in a bull or bear market. 

It only tells us if stocks are "overbought" or "oversold".  

It only tells us if buying stocks today is a good idea for the next few weeks. 

AAII Sentiment 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 July 27, 2022: 

= MODERATELY  BULLISH

40.9% of AAII Investors were bullish 

(was 41.2% bullish = MODERATELY  BULLISH last week) 

 

Four  Week  Moving  Average: 

= BULLISH

36.4% of AAII Investors were bullish (unusually low)

(was 34.4% bullish = BULLISH last week)

 

 

Recommended Portfolio Cash

percentage for short term traders: 

 = 0%

(was 0% cash last week)

 

 

Data for the week ending 7/27/22: 

27.7% were Bullish (under 20% is unusually low)
   (was 29.6% last week)

32.2% were Neutral
    (was 28.2%)

40.1% were Bearish (over 50% is unusually high)

    (was 42.2%)

 

 

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