The AAII sentiment poll came out this morning and it is eye opening. The bulls have left the building is the best way to sum it up.
The bulls dropped to just 19.31%, the lowest level since …… (wait for it…..) March ’09.
Not to be outdone, bears jumped up to 54.5%. That was the highest level since the SPX panic lows of July ’10. What is really interesting is the bears plus neutral readings checked in at a massive 81%. This was the highest reading since 81.1% back in March ’09. Thanks to the always spot on Chris Prybal in our QA department for crunching these numbers and doing the charts.
We’ve been saying for a longtime now that this is one of the most hated bull markets ever. I know that is kind of cliche to say, but there hasn’t ever been a time in history when new highs were made and sentiment is this bearish. We like to say ‘buy low expectations, not low stock prices’ around here. Well, this is yet another sign that expectations are still incredibly low and this can have a very bullish contrarian implications longer-term.