With equities riding a streak of multi-week gains, individual investors are gradually – and we stress gradually – coming out of the woodwork. In the latest sentiment survey from AAII, bullish sentiment increased from 32% up to 37.4%. While this is still below the bull market average, it is actually the highest weekly reading since November and represents the fourth straight week of increases. Believe it or not, the last time bullish sentiment increased for four straight weeks was back in October 2013, and if sentiment manages to tick higher again next week, it would be the longest streak of increases since December 2012!
Virtually all of the increase in bullish sentiment this week came from the bearish camp as bearish sentiment declined from 29.2% down to 24.4%. This also represents the fourth straight weekly decline in bearish sentiment. The last time bearish sentiment declined for four straight weeks was last November, which is also coincidentally the last time bulls outnumbered bears by this large of a margin (13 percentage points).