Thread: AAII Investor Sentiment Survey

I did a little research and saw that this bull market, which started 4 1/2 years ago, has not seen a major pullback of 5% or more, while the AAII Investor Sentiment Survey was not at least very close to 2 to 1 bulls to bears.

The current 1.26 to 1 ratio is a neural reading and nowhere close. It is actually closer to the 1 to 1 buy signal than a sell signal. Can this continue?

I can see a big rally next week take it towards 2 to 1, but until then I think there is too much buying power and we won't get the 5% plus pullback until we see more than 1.9 or more to 1 bulls to bears.

Of course a news related incident could put a scare in the market, but these small dips should continue to be bought until sentiment gets more bullish.

I will be posting the research chart in Monday's (6/25/07) comments.

AAII today came in at 45% bull, 25% bear; almost exactly the same as we were in mid January 2010.

http://pragcap.com/bullish-sentiment...r-january-high

Investors Intelligence. The spread continues to widen to extremes not seen since October 2007.

9/15/10 AAII Survey:

51% bulls, 24% bears, ratio 2.1 to 1

http://www.aaii.com/sentimentsurvey

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