Q2 STOCKS TO BUY

3 Signs Bulls Are Hitting the Exits

AAII and NAAIM surveys, on top of the latest options data, point to skepticism not seen in years

Feb 5, 2016 at 2:48 PM
    facebook X logo linkedin


    With U.S. stocks on the wildest ride since the financial crisis, Wall Street has grown wary. Below, we'll take a look at three charts reflecting the general skepticism.

    Not even a month ago, the number of self-proclaimed bulls hit its lowest point in more than a decade, according to the American Association of Individual Investors (AAII) survey. Now, the 10-week moving average of AAII bulls stands at its lowest point since August 1993, at 25.2%, according to Schaeffer's Quantitative Analyst Chris Prybal.

    160209AAII

    After ticking higher last week, the National Association of Active Investment Managers (NAAIM) Exposure Index -- which attempts to quantify the equity allocations among investment managers -- just suffered its largest point decline since mid-May, and its biggest percentage decrease since Oct. 15, 2014, Prybal says. NAAIM sentiment is now at the lowest point since September 2015, as of Wednesday.

    160206NAAIM


    Finally, yesterday's equity-only buy-to-open put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) hit its second-highest reading ever, clocking in at 1.26. In other words, options traders placed bearish bets over bullish at a much faster-than-usual clip yesterday. The highest reading ever occurred on Aug. 1, 2014.

    160206ISE

     
     

    “Buy This Stock Now!” - Expert Who Called 11x On TSLA

    He called a rare 11x on Tesla…

    But now, thanks to Elon & Trump’s new alliance…

    He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

    It’s trading for less than $5 per share right now…

    But it won’t be under the radar for long.

    Discover The 1,000x Bigger Elon Opportunity Here

    GRAND SLAM COUNTDOWN

     
     

    Featured Articles from Trusted Partners:

    👀Learn How Dividends Create Passive Income for Life
    Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

    💵New Income System Could Pay You $4,243 Monthly
    You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

    🚀Easy 92% Crypto Dividends (No Coins Required)
    COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

    🤝Free Advisor Match with Wiseradvisor.com
    Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

    ⚠️Dennis Quaid's #1 Warning for Americans
    Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

     

     
     

    Follow us on X, Follow us on Twitter