The Bullish Retailers

The Bullish Retailers

Based on TD Ameritrade’s sentiment index for February, retail investors were buying stocks more forcefully than in the previous three years. Interestingly the audacious investors were not intimidated by the automatic spending cuts - better known as sequestration - agreed upon by DC policy makers.

Instead, stockholders invested in stocks that would take them to the next bull market, purchasing underachieving assets such as Apple and Facebook.

TD’s logic dictates that robust retail trade might gesture more positive numbers in the near future. According to TD, many retail sentiment methods have a tendency to have a contrarian character based on the principle that by the time the investor has reached a bullish trend, it’s too late in the game and at this point the big shots have begun to go short.

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