BOCA RATON, FL -S ixty-five percent of equities and options traders believe the S&P index will rise between 5-20 percent by year-end, according to a late January survey of 240 investors conducted by online broker TradeKing.
While 50 percent of respondents described themselves as taking a “neutral” position on the market for the next three months, overall bearishness was its lowest in three years and long-term sentiment appeared bullish.
One reason for the lift in confidence may be the Obama administration’s recent shift in focus from healthcare reform to job creation.
Jobs still on everyone’s mind
When asked the question, “In light of the Massachusetts Senate election results, what effect does the potential move away from Healthcare Reform have on your investing sentiment?”
More than a quarter (28%) of investors said it made them feel “more confident” to only 6 percent who said it made them feel “less confident.” The remainder responded with “no effect” or “unsure.”
Not surprisingly, unemployment claims were cited by both equities traders (45 percent ET) and options traders (50 percent OT) as the top trading trigger to watch this quarter, followed closely by interest rates.
Energy, technology favorite sectors
“Last quarter, investors indicated they were eager to close the book on 2009 and looking to 2010 for significant economic recovery,” said Don Montanaro, chairman and CEO of TradeKing. “That sentiment appears to be carrying through as those surveyed this quarter predict a lift in the market by year-end, a prediction made more interesting by the fact that the survey was conducted right in the thick of last week’s mini market correction.”
He added that TradeKing is seeing increased trading activity and less hesitation on the part of investors.
Energy and technology sectors remained the favorite sectors for both equities and options traders, the survey showed.
Fifty-eight percent of total respondents selected Energy as their top long play in the coming quarter, remaining at the same level as October 2009. It was followed closely by Technology at 41 percent, which is down six points from last quarter, but still significantly up from a year ago.
TradeKing offers discount brokerage services and does not offer investment, financial, legal or tax advice.
Online: www.tradeking.com
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Tags: online investors, optimism, survey
