“Sentiment among retail investors is at record levels, higher than the meme-stock mania of 2021.” -Bloomberg & JP Morgan

**tl;dr High retail buying generally means a bullish near term.**

Article is paywalled. 🙃 “Their involvement in the stock market is near its highest since 1997.”

“Individual investors pumped $3 billion into stocks on Feb. 3 alone, with 70% of inflows going to Magnificent 7 stocks.”

“Retail traders are breaking all records,” says JPMorgan

On Wall Street, such levels of retail excitement would traditionally be seen as a contrarian indicator suggesting a downturn might be in the future, as buying power has been largely spent. **But JPM analysts argue that actually, extreme levels of retail buying tend to portend an upturn in the markets over the near term.**

“We find market generally outperforms following extreme retail buying and underperforms after extreme retail selling in short-term,” they wrote.