When I went over my sentiment indicators in yesterday's post I did not mention Rydex. The Rydex indicator has been like a broken clock recently. For the past 8 months Rydex has been showing high levels of optimism. To be fair the levels of optimism were more extreme until May. Last night the number of bulls to bears shot up 4.91 times, a level not seen since May. The leveraged bulls to bears ratio shot up to 4.3 times, also a level not seen in many months. Rydex is now in extreme optimism territory.
The Investors intelligence survey is my favorite of the surveys. It doesn't tend to jump around. I can't remember many good tops in bull markets where the number of bears weren't very close to or below 20%. According to the most recent survey the bulls are at 47.3%, and the bears are at 24.7%. Investors are now bullish but its still not at an extreme.