It may be cold outside, but individual investors have really warmed up to stocks in a big way.  According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment increased to 59.75% from 52.65% last week.  If that sounds like a high reading, that’s because it is! Not only is this the third straight week where bullish sentiment has been above 50%, but it’s also the second highest reading in bullish sentiment of the bull market!  The only week that saw a higher reading was back in December 2010 when it reached 63.3%. After stubbornly resisting the rally for several years now, individual investors are getting close to all in.

So where are all the bulls coming from?  Based on the chart below, it looks like they are coming right from the bearish camp.  As shown below, bearish sentiment dropped from 20.63 down to a paltry 15.56%.  The only week where bearish sentiment was lower was in November 2014 when it dropped to 15.05%.

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