For the past three weeks I have been posting the results of the NAAIM weekly survey:
For those not familiar with the survey, the National Association of Active Investment Managers (NAAIM) publishes a weekly sentiment indicator designed to measure the current market exposure of association members who based their investment strategies on active management. NAAIM has been gathering data and plotting the index since July of 2006.
Looks like most NAAIM members have become very bearish on the market and now have begun to short it. This week’s level is -3.56%. For reference, last quarters average was 66.99%.
NAAIM members seem to be getting more bearish and more aggressive with inverse strategies. FYI -The last time the sentiment index had a negative number was October 2008.
(disclaimer – I am a member of NAAIM)