Today the NAAIM released its weekly survey of investment manager sentiment. The results indicate a rebound in bullish sentiment compared to last week. Currently, investment managers have a 72% equity exposure. As you can see from the chart below this is a very volatile number much like the AAII poll. Generally a reading above 70% indicates caution and signals that we may be nearing a short-term top, which usually coincides with a reading of around 80%. However, it should be noted that this number can remain elevated for a while so it is best to combine it with other trading indicators.
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Black Swan Insights
NAAIM Manger Sentiment Declines--Oct 14, 2010