The number of bulls continue to increase as the "dumb money" indicator approaches extreme levels. I am not sure what these investors are seeing, but we do know that higher prices will bring out the bullish instincts. Putting our own emotions aside and looking at the data, extremes in bullish sentiment this late in a bullish run are better sold (i.e., lighten up on long exposure) than bought.
"Virtually repeating word-for-word what we said last week; there was little change week-over-week as insider sentiment remained in a Bearish Bias zone. Sellers outnumbered buyers more than 3-to-1 and have now been the dominant transactee every week since the beginning of September 2010 (32 weeks). No one sector stood out in terms of sentiment as activity was democratically dispersed. Transactional volume was seasonally light and will decrease further over the next few weeks as companies prepare to announce Q1'11 earnings."