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The survey says: 'Santa Claus rally'

Monday, 9 Dec 2013 | 12:04 PM ET
Retail investor quite bullish: Pro
Monday, 9 Dec 2013 | 12:50 PM ET
Digging into retail investment action amid the holiday season, with Nicole Sherrod, TD Ameritrade Trader Group.

Retail investors took a bullish tack in November, hinting at a Santa Claus rally this year, according to TD Ameritrade survey results released Monday.

"We think they are sticking with the trend until the end. Traders are moving into higher-beta momentum names," said Nicole Sherrod, TD Ameritrade managing director. "We saw an increase in inflows to equity mutual funds and ETFs and that's more of a long-term investor. For months we've seen outflows, so this is a change that we noticed."

On CNBC's "Halftime Report," Sherrod said it was the second-most bullish reading in its 4-year-old IMX survey of retail investors.

(Read more: Top true-growth stocks for 2014: Pro)

Getty Images

"Investor bullishness is at its highest level since June 2011," she added. "This is the most conviction we've seen all year, so this is all very positive. Does this point to a Santa Claus rally? Yes it does."

Among the most notable trends were new positions in Twitter, following the social media company's initial public offering, as well as selling of Facebook shares, Sherrod said.

(Read more: Momentum stocks big in October: TD Ameritrade survey)

For the second month in a row, retail investors were also net buyers of J.C. Penney, Sherrod said.

Stocks that hit peaks in November were also being sold, such as Pfizer, which had touched a 52-week high, and Microsoft, Sherrod said.

Apple and Exxon Mobil also saw net outflows, she added.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro. Katie Young contributed reporting to this article. Follow her on Twitter @KatieCNBC.

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