Equities sentiment has heated up again with today's rally

Sentiment in equities has heated up again today. As of the close yesterday, investors had definitely cooled off, as you can see by the SentimenTrader gauge (to the right) and the ISE index values as of yesterday, 4/23/09, in upper graphic portion of the ISE chart below. Today, as you can see in the table at the bottom of the ISE chart below, the ISE call/put ratio has moved up to the 170-180 range (170 or 180 calls for every 100 puts).

This is telling us that equities investors have turned bullish in their sentiment again, at least for the short term. If you look at the SentimenTrader gauge, investors have become moderately bullish for equities for the longer term.

From a contrarian standpoint, this is one of the reasons to remain skeptical. There are other things we look at; so, this is just checking in on the sentiment gauges.