Abstract: The scarcity of human-annotated literary corpora limits the development of domain-specific sentiment analysis models. This study investigates whether LLM-generated annotations can supervise smaller models for literary sentiment analysis. We fine-tune five BERT models using ordinal regression on 10,889 literary sentences annotated by Gemma 4 31B on a ten-point sentiment scale. The models are evaluated against 1,923 human-annotated sentences from Hemingway's "The Old Man and the Sea", alongside the teacher model and conventional baselines. BERT-large achieves a Kendall's $τ$ of 0.589, approaching the teacher's 0.604. Although a constant-neutral predictor achieves the lowest overall mean absolute error (MAE), BERT-base outperforms the teacher on non-neutral sentences, achieving an MAE of 0.726 versus 1.116. These findings demonstrate the potential of LLM-generated supervision for developing smaller literary sentiment models, while highlighting the limitations of aggregate error metrics on predominantly neutral datasets.