It seems you have JavaScript disabled.

Ummm.. Yeah... I'm going to have to ask you to turn Javascript back on... Yeah... Thanks.

Counting Sheeple at Trader’s Narrative

Counting Sheeple

Most traders are familiar with the Ameritrade index. If you’re not, basically it is a snapshot of what the average Ameritrade client is buying and selling.

Here is the most recent list:


Some traders keep an eye on this list because it can tip them off to what the dumb money is piling into - or out of. I’ve never really used it but I can see its usefulness.

Instead, I decided to see if I could look at the Ameritraders in a different way. So I went to and charted the traffic for My thinking was simple: the more people trade, the more they will have to visit the Ameritrade website to put in orders.

Then I plotted the traffic under everyone’s favourite market proxy - the S&P500. Here is the chart:


Note that this is only a look back of 2 years and I captured it about a month ago. But it was fortunate that I did, because for some reason Alexa has changed the way they display their data recently. Although they display more historical data, going back to late 2001, it is in a much less palatable visual format.

Anyway, as you can see from the chart, there appears to be a strong correlation between the activity at the Ameritrader website and the market.

Now, I don’t think you can actually trade off this as a tell, but its amusing nevertheless. Sheeple will always be sheeple.

Enjoyed this? Don't miss the next one, grab the feed  or 

                               subscribe through email: