Investor Sentiment Check

The markets are building on their early gains. Mid- and small-caps are leading the way, up more than +1.0%. Homebuilders are the leading group, followed by energy. Brokers and biotechs are still lower.

Investor sentiment is mixed so far:

• The ARMS index is around average levels (0.93)
• The ISEE is also at average levels (151)
• The CBOE put/call is elevated at 0.97, reflecting heightened bearishness

Also, the UBS Investor Optimism poll this morning had a reading of 103. This is the highest level since 2004, so it bears paying attention to. That said, within the survey, only 37% of those polled expect the Dow to finish higher in 2007.