Some Extreme Bullishness

Last night I posted an article showing how wrong footed hedge funds have been recently and highlighted that they were far away from being at a bullish extreme. It seems that individuals and market timers are reaching extreme bullishness. According to SentimenTrader.com AAII data shows individuals are the least pessimistic they have been all year.

Mark Hulbert writes that market timers have turned very bullish as well. From Marketwatch:

This water being thrown on the stock market’s parade comes from contrarian analysis. The wall of worry that existed at the correction low in early October has given way to a significant amount of enthusiasm and excitement — which does not bode well for the rally’s sustainability.

...In fact, the HNNSI is now nearly as high as where it stood in May, soon after the bull market hit what so far has been its high-water mark.