Bullish sentiment ticked a bit higher this week (see here for more) as higher markets reassured investors during the course of the recent three week rally. The most recent investors intelligence poll showed that bullish advisers jumped to 42.1% which was up from 41.1% last week. Bears declined to 22.7%.
The latest AAII poll showed a bullish reading of 35.9%. This is not an overly bullish reading, but does showing an increasing level of complacency in the market. Charles Rotblut at AAII elaborated:
“Individual investors are less fearful than they were a few weeks ago, but they remain cautious. The continued stabilization of the markets has helped to calm short-term worries. A good fourth-quarter earnings season and encouraging guidance is providing reason for hope. On the other hand, individual investors continue to fret about the slow pace of the economic recovery. Furthermore, ongoing uncertainty (rising interest rates, higher inflation, government debt levels, etc) has them thinking about protecting profits.”