New York (HedgeCo.net) – The American Association of Individual Investors released their most recent sentiment survey last week and the results showed that the number of bulls to bears has been growing in recent weeks.

The bullish percentage increased to 39% in the most recent survey and that is the highest bullish reading since the week of March 5. The bearish percentage came in at 18.6% and that is the first time since February 18 that the bearish percentage has been below the 20% level. The ratio of bulls to bears stands at 2.1 as a result of the previously mentioned percentages, and that is the first time since February that the ratio is above 2.0.

Such extreme bullish sentiment is concerning from a contrarian viewpoint, especially after the declines in the summer and the recent six-week rally lifting stocks in to overbought territory on the daily charts.

Rick Pendergraft
Research Analyst
HedgeCoVest