Here's an interesting post from Josh Brown, "Bullish Sentiment is Now Officially Embarrassing."

Josh writes,

"It was much easier being an optimist before everyone else came around. As I said the other day, I no longer know what to think at this point (see: Now What?).

"The data is all more constructive – Bill McBride (Calculated Risk) thinks we’re on the cusp of a major lift this coming year. But the expectations have already run off to the races at this point. Even the black swan fetishists have dropped the black nail polish routine and crawled out of their Recency Effect caverns and spider-holes.

"And so we’re left with a sentiment bubble – if not fully formed then certainly one in the making. It’s like the adrenaline surge people get from near-death experiences, a mass realization that things are turning out okay despite half a decade of misery and trauma. It’s almost sexual in its urgency, its intensity."

[…]

"the chart, via Greedometer, who is unapologetically calling this a bubble:"

 

 

"Josh here – I gotta tell you, a 10% whoosh down sometime soon would be as welcome as rain in the desert. We’re out of the only petrol that makes the market’s motor hum constructively – Fear.

Read Josh's full article here.