Bullish sentiment among investors was up during the week ended this Wednesday, according to the most recent weekly online survey of members of the American Association of Individual Investors.Sorry no charts right now, my computer is having technical issues. I will try to get them up as soon as possible. As regards the AAII sentiment survey, it is getting near the danger zone for contrary investors. Generally when bullishness gets above 50% and bearishness falls below 25% it is not the best time historically to buy stocks. The numbers are indicating that we may be nearing a short term top in the market. Caution is the key message from today's AAII survey from a trading perspective.
Bullish sentiment rose to 50.89% from 43.87%, but bearish sentiment fell 24.26% from 31.61% during the previous week.
The percentage of investors who described themselves as neutral on the stock market rose to 24.85% from 24.52%, according to the poll.
UPDATE: I finally got the charts working.
Here is a 6 month chart of the AAII sentiment survey.
Here is a 1 year chart which compares AAII Bullish sentiment to the SP500. You can see that bullish sentiment is at the highest point within the last year. What does that mean? Stocks are likely topping right now.
Black Swan Insights
AAII Sentiment Survey Surges For Second Week --Sept 9, 2010