Following the Investors Intelligence reading of newsletter writers yesterday where bulls rose to a 6 month high, today’s measure of individual investor sentiment is even more enthusiastic. Bulls in the AAII survey rose to 57.6, the highest since Jan ’07 vs 48.2 last week. There is nothing like an 83% rally off the low to a two year high to get individual investors so excited. I’m sure if Wal Mart raised prices by 83% on its top 500 goods, they’d be out of business rather quickly but we all know stock market psychology runs in reverse. Bears fell to 28.5 from 29.8 but remains above the recent low of 21.6 two weeks ago. China’s Oct CPI rose 4.4% y/o/y, the most since Oct ’08, mostly due to a 10.1% gain in food prices and the Yuan is rising to a new high vs the $ in response. Bank loans rose 588b yuan, 138b above forecasts but retail sales and IP rose a touch below expectations. Moody’s did upgrade China’s sovereign rating one notch to Aa3.
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